I do basically a rock and roll version.

Capo 3 - then assume that I am playing to E (instead of G)

D is fretted 500775 save where specified. E perf is 079900. The E7 is played as an E perfect with the D played on the A string (it's a bit of a stretch).

(Eperf)Sally (D)free and(Eperf)eas(Eperf, 7, then perf)y,
that should (D)be her (Eperf) name (E perfect, 7, then perf)
(next line the same chords)
Took a (ThumbyG) sailor's (Droot, followed by usual twiddle through the augmented) loving,
for a nu(ThumbyG)rs(D root)ery (E perfect)game