FedEx dropped off my iPad2 dock this afternoon. It doesn't look like Apple put any real thought into making the dock compatible with the Smart Cover, which is a bit of a disappointment. The iPad2 will not fit in the dock with the Smart Cover closed over the screen, though you don't need to remove the Smart Cover to set the iPad2 in the dock, the cover just needs to be off the screen. Once the iPad is seated you can fold the cover back over the screen. The Smart Cover will bulged out where it goes over the lip on the front of the dock but there is still enough contact for the smart cover to put the iPad to sleep. I'll snap a few pictures in a bit to better illustrate what I'm talking about.