1st version gave it a good go, but I believe this sounds like it is the right way.
Also, for me, easier to sing with a capo on the 5th, but I have a low voice.
Noodle around with the transition from C to Am if you fingerpick it and it sounds pretty good
Intro: Am Em F C
V1
AmEmFC
Cool fog in the morning, like cotton on the trees
AmEmFC
Quiet enough to hear the song, in the humming of the bees
AmEmFC
Floatin' out from the highway, sayin' come on up my way
AmEmFC
Through the tall grass in the valley, where the earth and heaven meet
( Tab from: http://www.guitartabs.cc/tabs/b/brandon_heath/blue_mountain_crd_ver_3.html )
CH
AmEmFC
Won't you come on up, to blue mountain
AmEm
Above the clouds and the busy crowds
FC
It's where you wanna be
AmEmFC
Won't you come on up, to blue mountain
AmEm
Where the time crawls and the water falls
FC
Blue mountain majesty
V2
AmEmFC
Send a postcard, to your sweetheart, take a picture by the sign
AmEmFC
See all the way, to seven states, and the coast if the weathers right
AmEmFC
Well its always right, its paradise, its like you've never seen
AmEmFC
Take a nap under a hickory, and wake up in a dream