i've been to 70+ dylan shows. i love the guy, others can complain about his voice all they want - i find him to be a genius and his shows are entertaining (to me and thousands of other Bob-heads).
if it weren't for dylan and ho's, i'd be a richer man - at least monetarily.
to choose a favorite depends upon the state of mind and my usual state of mind gets the most joy out of hearing "just like tom thumbs blues". i went through a "tangled up in blue" stage and anything from "time out of mind" stage. "desolation row" got me through some rocky times. currently in a "time passes slowly" stage. and off course, you can never ever go wrong with "like a rolling stone".
as far as interpretations go ... i love the grateful dead cover of "she belongs to me". you can see an acoustic version here with just jerry, weir, and lesh:
http://www.youtube.com/watch?v=s_8obCnsw4c
but my favorite version has to be from june 15, 1985. listen here, 1st song of the encore:
http://www.archive.org/details/gd85-06- ... sbeok.shnf