I found this live recording of The Dirtballs from 2006:
http://mp3too.com/artist/214836-the-dirtballs.html
It was recorded at Barbes, in Brooklyn. The players aren't identified, but I'm pretty sure the banjo player is Richie Stearns. The set includes a tune he wrote ("Lost Everything"). I can find nothing about them on the Web. It was probably just a one-night get-together.
You need to download it one track a time, but it's worth the effort. It also includes "Going Back to Israel."