Yes. I first synchronised the iphone with itunes on my laptop. How much I hated having to download a new version of itunes every time I just wanted a simple backup! Last time for me! Then I took the usb cable and synced the N8. All my itunes music went to the N8, and also the album covers. Excellent!!!
Can you clarify how you sync'ed the N8 with iTunes? I wasn't aware that you could do it. Did you mean, you opened iTunes, plug in N8 to the PC via the USB cable and N8 pops up on itunes left-hand panel and then you just sync the iTunes library with N8?
I only ever tried to copy my mp3 collection using Ovi Suite but it's not as nice as iTunes.