What steps will reproduce the issue?

1. As long as the option to enable metadata for WMC Library
2. Or if the "Create Windows Media Center default video library dvdid.xml data for
all titles" is used

What is the expected output?  What do you see instead?

Even if There's already covert art and a mymovies.xml/dvdid.xml present in the folder
for the film (or not) blue cover art is put up instead. The metadata itself, however,
it there as expected. 

What is the exact version of the Media Center Master that you using?  Make
sure you include the build number (example: 1.24.21610.455).  With what
media software?  (MediaBrowser, XBMC, SageTV, etc.)

This is in Windows 7 Media Center. I'm not sure if it happens in Vista Media Center.
Using the most recent version of MCM as of Jan 7th, and for at least two versions prior.

Please provide any additional information below:

There's a thread about it here:
http://forums.mediacentermaster.com/viewtopic.php?f=6&t=1935