How do i add album art to my ipod nano albums?

It can be done manually by dragging art (from amazon.com or other websites) into the box that asks you to do it. Or you can use this useful piece of software:

http://www.yvg.com/itunesartimporter.shtml

Go to any online music retailer and copy their artwork for each album.
Allmusic.com
Amazon.com
Walmart.com
Etc.

Find artwork you like and that is reasonably small in file size. Each music track will need one picture.

There are also semi-automated art finder programs. Google can help.

You have to append the artwork to the actual music files themselves. What I do is search Amazon.com for the album that the songs are off of, click the artwork so it expands and then right click the larger artwork and COPY.

Then in iTunes go into "get info" on the song, and paste the artwork in the artwork tab. This will append it to the file. Yeah yeah i know it isn't technically legal to "copy" the artwork but I honestly don't give a rat's *** about doing it and neither should you.
(...cue finger-waving "shame on you, you're breaking the law" post...)

Then once you transfer this song you put the artwork on to your nano, it should show up there when you play the song. At least this works for me on my 30GB iPod video.

As you may have read in my other asnwer, you can't.

You don't have to go folder by folder, though. If all albums are contained within one folder, you can drag that top folder in, and iTunes will add all.

i did not know you could drag and drop,i just right click,go to get info,album artwork,and add