Buy.com has the Magnetic Smart Slim Full Body Cover for iPad 2 (Black, Red or Blue) for $13 with free shipping. Features eco-friendly PU leather exterior with micro fiber lining, magnetic front cover with auto sleep and wake functions, full back cover, and folds into a multi-position stand. Also available with a polycarbonate back in Black, Brown, White or Yellow for the same price.
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The mag field could possibly interfere with function...any EE degree peeps on here
Reading the reviews a lot of the owners are happy. There was one that said the cover my interfere with the ambient light sensor because the cover is over top of it. Personally I do not know. Most of the reviewers seem pretty happy and for 13 dollars it seems like a good deal.