Greg -
"Something catchy first...it's the only one the festival organisers will listen to"

Treewind -
That's true but for the same reason it's a bad idea (as discussed in an online forum somewehere recently, maybe here) to use a full length album as a demo anyway.

As an intentional demo probably. But everything you record is possibly going to be heard and maybe by someone who may be interested in booking you etc. They may only ever get to hear your CD, and not your demo, so it would be a good idea to give the first track a lot of thought. A folk club organiser for example may have heard your name and seeing it on a CD may play it out of interest.......