Is it possible to keep my covers folder on the external mmc and place a link in the /home/user/.canola folder and everything will work alright? If so Exactly what do I type at the command line , assuming the path is /media/mmc1/Music/Covers ???

What's the covers directory called in the /home/user/.canola folder? Assuming it's also called Covers (i.e. /home/user/.canola/Covers/) you could do this:

ln -s /media/mmc1/Music/Covers /home/user/.canola/Covers

This will symlink the folder, if the individual files just float around in the .canola directory you'll have to symlink each one (painful) or symlink the whole .canola directory and place that on the SD card.

Thanks!!! works perfectly, and for some reason i swear it seems like it scrolls a bit smoother with it done this way.