I think I found the same recording you found, and it seems to me you have a pretty darn good transcription. I hear "She's set a table," but it could just as well be "she set a table."

Lady Gay
(as sung by Buell Kazee)

There was a lady and a lady gay
Of children she had three
She sent them away to the North Countree
For to learn their grammaree

They had not been there very long
Scarcely six months and a day
Till death, cold death, came hasting along
And stole those babes away

It was just about old Christmas time
The night being cold and clear
She looked and she saw her three little babes
Come running home to her

She's set a table both long and wide
And on it she put bread and wine -
Come eat, come drink, my three little babes
Come eat, come drink of mine

We want none of your bread, mother
Neither we do want your wine
For yonder stands our Savior dear
And to Him we must resign

Green grass grows over our heads, mother
Cold clay is under our feet
And every tear you shed for us
It wets our winding-sheet

Recorded 16 January 1928, Brunswick 212.
From Folk Song America, Smithsonian Collection of Recordings.

The notes tantalizingly say, "A longer version of 'Lady Gay,' recorded at a 1969 Seattle concert, can be heard on the June Appal album Buell Kazee."