Cheers PC.
The Pete Shotton book has an anecdote about the time he, Lennon and Derek Taylor first heard Pandemonium Shadow Show. I think they were tripping at the time, and listened to it over and over. At one point in the night Lennon spoke to a somewhat starstruck Nilsson on the phone - I wonder who was more confused.
Unfortunately, perhaps the best-known Nilsson/Lennon collaboration is girl private Cats, which was made during the Lost Weekend. It's a terrible record, made no better for having been produced by Lennon. Nilsson killed his voice with alcohol, which is a huge tragedy. HN also appears on Walls and Bridges.
The first link I posted above contains a cover version of Lennon's Isolation which I only heard recently. I think it was a bonus track on one of HN's CD reissues.