I first stumbled on it trying to ape Stephen Stills's arrangement of Everybody's Talkin', but then hit on it again last weekend when asked spur-of-the-moment to try out Dear Prudence. It's also useable for Darcy Farrow (though clearly not really 'right' for any of those.)

So drop D tuning, obviously, you put the low E string down a whole step to D.

Then play the D chord on the top three strings at the 5th fret... I guess in tab it would be
000775
or
DADDF#A
then the next one is a shortcut Dmaj7... just slide your middle finger, which should be on the G string at the 7th fret, down one fret so that you've got
000675
or
DADC#F#A
then slide down to the 7th; the easiest way I do the next one is to bar the first finger across the top 3 strings at the 5th fret while leaving the ring finger where it is
000575
or
DADCF#A
then the last one is apparently a 6th; index finger on the 4th string at the 4th fret
000475
DADBF#A

then repeat (in the case of my bootleg Dear Prudence) or move on to the G in the progression (bootleg Everybody's Talkin').

-------
so I'm in a band now:
album ---> http://greenwoodburns.bandcamp.com/releases
Soundcloud ---> http://soundcloud.com/greenwood-burns

my own stuff -->http://soundcloud.com/lonesomedstringband

avy by buckshot_defunct