Jon Allen plays the song with his guitar tuned down a whole step and his capo on the 4th fret.
So you can just use a capo on the second fret on standard tuning.
The G7 chord he uses isnt your usual |3-2-0-0-0-1|, but instead he uses the |3-2-3-0-0-x/3| variant,
in wich he alternates the first fret on the B string.
Intro: C Am F G7 x2
C Am
Well I was busy going nowhere
F G7
Hanging out in no mans land
C Am
When you showed me the silver
F G7
There in bad lucks ugly hand
F C
Youve got the sweetest disposition
Am G7
And a heart thats open wide
F C
I know that youre the woman
G7
Whos gonna keep me satisfied
C Am
Sweet defeat
F G7 C Am
Im lying helpless at your feet
F G7 C Am
And so its goodbye to the street
F G7
Im so pleased to meet you sweet defeat
Well Id given up believing
That Id ever end up here
But now Im happy on the high wire
With your voice ringing in my ears
I wanna call you up Sundays
When Ive nothing much to say
I want hold on to you darling
Throw everything else I got away
Sweet defeat
Im lying helpless at your feet
And so its goodbye to the street
Im so pleased to meet you sweet defeat
Youre like the morning breeze a blowin
Right through this weary soul
You give me a feeling
From my head down to my toes
Sweet defeat
Im lying helpless at your feet
And so its goodbye to the street
Im so pleased to meet you sweet defeat