The Australian prog folk artistWyatt Moss-Wellington does a cover of Robert Wyatt´s "Alifib" on his album "Gen Y Irony Stole My Heart" (2010). A tough choice for a cover song, since this is so much Robert Wyatt´s song, but thumbs up for trying!
And not only "Alifib", but Moss-Wellington covers one more of my favorite songs ever! He does a nice version of The Roches´ "Hammond Song". Listen to the original on MySpace, with Robert Fripp playing guitar.