I was just watching the youtube video and playing around with it...Try CAPO 3 and start with a progression of these chords, while doing your standard funky variety hammer-ons in the middle of your chords. He does a little quick double muted F chord in the melody that repeats, too it sounds like.
032010 C "When the sun goes down
X20010 Cadd2/B "out on..."
002210 Am "my, side of"
003211 F "town..."
F "That's when I heard that"
320003 G "Midnight"
C "Train"
I think there might be a Dm7 and a G7 in there somewhere, but here's a start for you.
Also, you might to a web search on "chords in the key of C" which will give you some other ideas and let me know if you come up with something really close.
Crow