as near as i can tell:

Verse 1 In the first verse he works on a train, until the union army (stonewall jackson) comes and destroys the tracks to keep supplies flowing to rebel armies during the civil war. He lost his job and hes hungry, then the union army takes richmond, VA.

Verse 2 He's with his wife and he sees Robert e lee go by. He gets a job chopping wood, claiming its not beneath him. Then he laments that they shouldnt have taken dixie down (taking the very best)

verse 3 Like his father the farmer and his dead brother the soldier in the rebel army, and died in battle with the union, hell die before he admits defeat.

I think that pretty much does it....