For Dylan covers 'tangled up in blues' (I know, that was horrible), check these two good blues cds...Chicago blues guitarist Bob Margolin, who played with Muddy Waters, covers "Not Dark Yet" from Dylan's "Time Out of Mind" on his "Hold Me To It" release in 1999. Margolin's version was home recorded as a demo, and he played all the intruments. Very nice.
The best however, is from Clarence Gatemouth Brown's "Long Way Home" cd from 1996. He does a great cover of "Don't Think Twice". What makes this one so special, besides Clapton on lead guitar, is Maria Muldar singing one of the verses. This is a remarkable version and isn't even the best song on the album! Highly recommend this one to friends.
Best regards from Northwest Ohio!