Transformative Works Policy
In short: Yes, absolutely. I'd be delighted.
The longer version: You don't need my prior permission to create podfics/arts/fics/sequels/remixes/crafts/commentaries etc. based on my work, but I would love for you to provide me with a link to the finished work so that I could properly squee about it! ;)
Oh, and if you create podfic of my work and don't have a cover art but want one I'd also be very happy to make you one. *g*