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As far as I know (I haven't tried Snow Leopard), iTunes remains the same, still Version 8.x, so it ought to. I'd guess whatever becomes iTunes 9 might have problems, but we don't have it yet.
 
Having upgraded to Snow Leopard and iTunes 9, Dock Art no longer functions... shame :(

Belay that comment - I should have RTFM - DockArt does work with Snow Leopard and iTunes 9 if you install it properly !!! I used version 1.3, not sure about earlier versions. Sorry for any confusion!
 
I have DockArt installed and working on Snow Leopard.

I think it still works with iTunes 9, although I haven't been at the MacBook much since I updated to 9.
 
DockArt worked for me with iTunes 9 and Snow Leopard, except that if I played a song with art and then went to a song with out art it would retain the album art from the previous song instead of going to the iTunes icon. Slightly annoying so I deleted the plugin.
 
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