Man, I was just about to comment on this!

That's Leo Kottke playing first (Busted Bicycle is the name of the song I believe; I know it's on an album called "6 & 12 String Guitar", which has a picture of an armadillo on the front (and is known as the armadillo album)). The outro is Meat Puppets, "The Whistling Song" off II.

Great soundtrack!