He now often plays with Joe Locker and his son Ben Paley in the New Deal String Band. Here is a bit about Joe on the Freshwaters UK web page :
Originally from the Bronx, New York City, Joe Locker is a picker and banjoman who learned his trade in the late 1950s and early 1960s, during the now legendary Washington Square Park sessions, from the playing of people such as Roger Sprung, Eric Weissberg, Tom Paley and the New Lost City Ramblers....

I am happy to report that You Tube has a few offerings of Tom Paley
http://www.youtube.com/watch?v=Wx6mSRM4JW0
and here from a session at Shakespeare's Head in April 08
http://www.youtube.com/watch?v=TsRUldSRy9I&NR=1
and this from a live performance at Jazzå 2005 (he speaks Swedish here)
http://www.youtube.com/watch?v=e9beYvEO_DM&feature=related