During this time, Goodman also made several studio and live recordings with New Grass Revival, a progressive bluegrass band which featured notable musicians Béla Fleck and Sam Bush.
In 1986, Southern Pacific released the album "Killbilly Hill," which featured country-rock oriented cover versions of Bruce Springsteen's 'Pink Cadillac' and the Tom Petty song 'Thing About You,' a duet with Emmylou Harris, in which she and Goodman shared vocal duties.
Southern Pacific then performed at Farm Aid on September 22, 1985, with Bob Dylan, Tom Petty, Bon Jovi, Roy Orbison, Lou Reed, John Fogerty, Merle Haggard, Neil Young and Willie Nelson.
During the early period of their career, the band was living in the mountains above Boulder in school buses, tee pees, and even a doughnut truck, Magic Music wrote a sizable amount of material, in between opening for many famous acts of the time on shows produced by Barry Fey and Chuck Morris.
The album also features numerous special guests including Sam Bush of New Grass Revival, Bob Dylan's fiddle player Scarlet Rivera and The Doobie Brothers' guitarist John McFee, formerly of Southern Pacific.