By over produced, the first album was simply bass, drums, guitar, violin, and keyboards with little embellishment and hardly any notes being sustained for very long in this quick & tight music.
Here is Holiday from the first album:
Dixie Dregs - 02. Holiday (1975) - YouTube
It is also possible that my personal experience has more to do with this than actual quality of the production. I grew up in Aiken SC and Steve Morse grew up in Augusta Ga (20 minutes away). Even though their band was a project for college (University of Miami), they would routinely play concerts at Augusta College and a hole-in-the-wall joint called "The Warehouse" in Aiken. I saw them many times and remember when they showed up at a concert selling their first album. They managed great live SQ, maintaining the crisp tight sound necessary to make their music work. In any case, this is the sound I knew them for and I may be biased towards it (as familiar and good times), for it was certainly amazing to have such tremendous talent locally available at such small venues!
The sound is comparatively empty, but each note is more distinct.
What do you think?