The Velvet Underground’s ‘Pale Blue Eyes’ is one of my favourite songs but nothing beats Paul Quinn and Edwyn Collins’ version from 1984. I remember it being reported at the time that Lou Reed thought it was the best cover version of any of his songs.
I’ve been thinking about it because the wonderful Papercranes have now covered it and released it with their new single ‘Long Way.’ You can download both songs for a price of your choosing at Papercranes’ Bandcamp page here and, while both songs are fantastic, it’s ‘Pale Blue Eyes’ that’s already on repeat. Too early to say if it’ll become my new favourite version.
In the meantime, here’s a ropey video from 1984. Still sounds wonderful though.
Adrian Masters 
Adore the original version of Pale Blue Eyes.
Beck’s version of Run Run Run is definitely worth a look. You’ll love or hate it but I wholly endorse: http://www.youtube.com/watch?v=X_taM8_m5zY&feature=related
There’s even better version of Femme Fatale to be had too: http://www.youtube.com/watch?v=fgQeJlkYrEo&feature=related
Alex
Both excellent, thank you for drawing my attention to them.