To see the breadth of Dylan covers check this:
The song "All Along The Watchtower" alone has been covered by the following bands:
The Grateful Dead, Dream Syndicate, Bryan Ferry, Ben Harper, Jimi Hendrix (the most famous), Indigo Girls, Dave Matthews, TSOL, U2, The Waterboys, Neil Young, and Warron Zevon.
That's just one song.
Someone's list of Top 10 covers:
http://www.associatedcontent.com/art...ver_songs.html