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Purchased at Best Buy yesterday for the same price as a smart cover. I got the smart cover too and was going to try both out but I'm liking the Targus case right now.

Here's what I got: http://tinyurl.com/74ggxbs

EDIT: Sorry, here's the case I actually got. Noticed the one I posted was $60 as opposed to $40 at Best Buy. Also noticed the $60 case people said they were having problems but the one I got has good reviews.

http://tinyurl.com/7a3jvpj

I bought that same one at first but took it back yesterday as it was to large and heavy to me.
I went and bought the Griffin Elan Folio Slim and it is nice and thin and works like the original Apple case plus the magnet wake and sleep cover.
It is wheel worth a look.
I fond it at Bust Buy btw.
 
I am going to try my existing

I will try my G-Form Extreme sleeve, the original version released for the iPad 2. (I didn't like the revised version. It did not really compensate for the smart cover and was even harder to get out of the case).

If this sleeve works it'll still be a tight fit, but I honestly don't feel like buying another case.

If it doesn't fit, I'll wait until more folks chime in. There are some nice choices here, but I need something that will work with the smart cover.
 
I just picked this one up at Nordstrom Rack (of all places) for $20. Mine is black though.
411i13jkgpL._AA300_.jpg

http://www.amazon.com/Case-Mate-Versant-Leather-Case-CM013828/dp/B004WWVYUM

The Amazon reviews say the iPad 2 slips around too much. Well, the new iPad fits perfectly snug and doesn't move around at all. The built-in magnets work perfectly too. I bought this as a temp case until my eBay purchase arrives, but I may end up keeping it. It's real leather too, so that's nice.
 
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