What's your favorite remake of a song

Yes, lots o' good stuff already mentioned.

One not listed yet is "You Really Got Me" by the Kinks.
Nicely updated by Van Halen.
But the version I really enjoy is by Oingo Boingo!

I will second the Cowboy Junkies "Thunder Road" and add:

Shonen Knife: "Top of the World" (Carpenters)
Bob Dylan/Tiny Tim: "I've Got You Babe" (Sonny and Cher)
Be Good Tanyas: "Waiting Around to Die" (Townes Van Zandt)
William Shatner: "Mr. Tambourine Man" (Dylan, Byrds)
Nazareth: "Love Hurts" (Roy Orbison)
Persuations: "The Wanderer" (U2)
Ike and Tina Turner: "Proud Mary" (John Fogerty/Credence)
Tom Waits: "Hi Ho, Hi Ho" (from Seven Dwarfs)
Aretha Franklin: "Jumpin Jack Flash" (Rolling Stones)
Sebastian Cabot: "It Aint Me Babe" (Dylan)

the rationals-respect......manfred mann's earthband-going underground......mitch ryder and detroit-rock and roll........the dictators-search and destroy.......about a hundred others

I will second Joe Cocker. Pick up the CD 'Night Calls' and listen to his version of 'Can't Find My Way Home' and 'You got to Hide Your Love Away' simply beautiful.

Jeff Beck "Cause We've Ended As Lovers"