To be a little more specific than my title, here's what I have going on:

1. Normal Ubuntu 12.10 system using Unity and the stock version of Nautilus with very few changes (extensions, etc).

2. I have a partition dedicated to music that I have ripped into FLACs, and many of them I have either used my cellphone to snap a JPG of the cover, or I have downloaded cover art from the 'net. Most of the images are in the 600x600 pixel range. Most of them are labelled something relatively obvious like "Cover Art.jpg" or "Name Of Album.jpg", although some of them are less obvious like "IMG1034.jpg", and some of them from the 'net have retarded filenames.

3. I want to automagically force all the directories to snoop inside to find an image and to use that as the icon art (the same as right clicking on the folder, going to properties, clicking on the icon and then navigating to choose the image).

4. If the above is possible, can I also force it to look 2 folders deep? For example, I have more than one album by an artist, so the art will be inside a nested folder for the specific album. I would like the parent artist folder to just grab the first piece of art it finds in its nested folders and use it for its own icon.

5. If possible, I would like the nested album folder as indicated in point 4 to also grab its own art icon.

Note that I have around 150GB of music , mostly in FLAC format (Yeah, I am one of those music junkies that has been collecting CDs since they first hit the bigtime in the 90s). So doing this manually would be incredibly time consuming. It's bad enough that I am Obsessive Compulsive enough to go through using ExFalso to forcibly rename the files (and/or the meta tags or both) so that all of my folders have precisely the same naming conventions.

/begin rant
And just in case anyone is suspicious, yes I have downloaded plenty of music over the years, but I always buy the stuff I love. I consider this as, "voting with my dollar," so that the artists I like get the incentive to produce more, and the ones I dislike get deleted. /end rant