The original "Strange Powers" has a subdued authentic feel because of Stephin Merritt's vocals, but James Mercer doesn't hesitate to remove the synth and percussion to make it all the more Shinsy.

The cover sounds good with the exception of a several missed notes in the lead guitar, but I do miss the percussion from the original that adds tons of depth.

The Shins: "Strange Powers"
The Magnetic Fields: "Strange Powers"

Now HERE'S one that The Shins REALLY take advantage. We get percussion and some sweeet vocal melodies. I think I like this one more..
The Shins: "We Will Become Silhouettes" (Postal Service cover)