Try going to F sharp (F#) "bad", and then walk your bass down the A string from C to A, when you turnaround back to the C chord. (C)ever (B)had (A)had, on your way to the A7. Another neat trick is to play a D major in place of the D7, drop the entire chord down one fret and slide back into the D somewhere in the "Said goodbye, made me cry" phrase. Tom Rush does this song really well and incorporates some Travis picking around the "Want to lay right down and die" phrase. Give it a listen!
MarkS