I transcribed this version of Joseph's Dream myself a couple a days ago. I couldn't do a perfect job with it, and so at four places in the song, I have a ?, possibly followed by some brackets, with the closest thing I could figure phonetically. This is transcribed from Leftover Salmon's version of the song, and it probably slightly different than Hartford's original words. Please post any corrections you can find.

[When Leftover Salmon recorded this song, they misidentified it as "Joseph's Dream," having been misled by an incorrectly labeled John Hartford CD. The correct title is "Get No Better." "Joseph's Dream" is actually a different song. Better transcriptions of both "Joseph's Dream" and "Get No Better," based on actual correctly-labeled John Hartford recordings, can be found elsewhere in this thread.--One of the JoeClones]

Joseph's Dream as recorded by Leftover Salmon
Original song by John Hartford
Transcribed by Jesse Swidler

he caressed her breast and she ?[hi di died] his thighs
L and ?[ in the middle] was a wine bottles and cheese
he took a polaroid picture that was naughty, in a slip, yes he did
just when you think it can't be getting no better then it did

just when you think it can't get no better then it does
it's always so much better than it ever was
seems like all them good things come at once, yes it does
just when you think it can't get no better then it does

well they both wanted off today but neither one of them ?[got it]
he said I'll probably get in trouble now, but this time I don't care, now
I should be going to work but I would rather be right here with you instead, oh
just when you think it can't get no better, then it did

just when you think it can't be gettin no better, then it does
it's always so much better than it ever was
seems like all them good things come at once, yes it does
just when you think it can't be gettin no better then it does

he dropped school and she played the five string banjo
she lived here in town and he traveled the whole world wide
he got in the car, scored a lid, ?[she caught a fly in the tea], oh
just when you think it can't be gettin any better, than it did

just when you think it can't be gettin no better then it does
it's always so much better than it ever was
seems like all them good things come at once, yes it does
just when you think it can't be gettin no better then it does

It was the perfect day for a ?[damure] and a picnic
and the driving range was a beautiful place for love, love yeah
overhead, the big texas sky with stars all shinning, yeah
just when you think it can't be getting no, no better than it does

just when you think it can't be gettin no better then it does
it's always so much better than it ever was
seems like all them good things come at once, yes it does, yes it does
just when you think it can't be gettin no better
just when you think it can't be gettin no better
just when you think it can't be gettin no better then it does, oh now
it's always, (so much),
always, (so much), so much, (so much)
so much better than it ever was

just like all of them good things come at once, oh now
just when you think it can't be gettin no better then it does, oh now
just when you think it can't be gettin no better, oh
just when you think it can't get no better,
just when you think your down,
just when you think you it's out
just thinking about thinking about keeping on thinking ohhh
it time to get to be gettin better
woah you know you're gonna feel alright
oh dancin'll make you feel better, make you feel better,
feel all around the country, gonna feel good
it gonna get, I'm gonna give it to you
it's gonna feel strong, and you know, oh gonna get better
it's gonna get better and then it always does