jbaent, what kind of an attitude is this, mentioning Phil Collins as a good example. I will have to report you to dusty...
But you are right on all other counts. His guitar was recorded at his studio and was mixed with the rest of the song later. It is a Willie Nelson song, and even though I admire the guy, I am not that much into his music. But that is just personal taste. (By the way, I loved Nelson's re-edition of Dylan's "What was that you wanted" at the concert for Bob's 50th birthday. But it is an awesome song anyway.) Of course I dare say that MK's collaboration with B.B. King wasn't bad, and with John Fogerty was above fine, even though they were both overdubs. So i guess apart from the necessary alchemy between the musicians at a live-present in the studio recording, you have to have a nice-fitting composition as well.
But enough said...