Ahhh Rick, thanks mate, thats really interesting. I guess as its still early days for me it takes a while for me to go throught the R 3 5 process the way you do but maybe I’ll start working that way, it may help speed me up over time.
Funny thing is I worked my way along the fretboard when I was testing my theory originally and as you can see in my OP came to the same 5th fret conclusion purely because I really liked the sound 
Thanks again for the feedback
I have a Capo question
Hello Richard,
I have been practicing for approximately six months and am beginning to play with my church, where the music is performed in specific keys. There are several chords on the song sheet that I have not yet practiced. I read your lesson on using a capo but remain somewhat confused. (Sorry)
If I need to play a song in a particular key, such as the key of E, do I need to transpose all the chords in the song to match the key of E? For example, based on your third example, if I place the capo on the second fret and use a D shape, does this effectively produce the sound of an E chord, thus allowing me to play in the key of E? How should I handle the remaining chords in the song, such as C#m7 and A7? Should I move the capo to the fourth or seventh frets to keep everything in the key of E? or do I transpose each chord. I would like to be in a chord shape I am comfortable playing.
I apologize if my questions are unclear—I am seeking a better understanding of how to use a capo when playing with others.
Anthony - good questions.
You need to look at the original chords and number them from 1 to 7. I use the Roman numeral system and prefer upper case for major chords and lower chase for minor (and diminished) chords.
In your example you state the song is in the key of E with chords E, A7, C#m7.
The E major scale and its scale degrees.
E, F#, G#, A, B, C#, D#
1, 2, 3, 4, 5, 6, 7
The chords in the key of E (following Major, minor, minor, Major, Major, minor, diminished)
E, F#m, G#m, A, B, C#m, D#dim
I, ii, iii, IV, V, vi, vii
Ignoring any extensions (you have 7th chords listed) and just focusing on the core part of the chord, you have:
E = I
A = IV
C#m = vi
Capo fret 2
E = I = D-shape
A = IV = G-shape
C#m = vi = Bm-shape
Capo fret 4
E = I = C-shape
A = IV = F-shape
C#m = vi = Am-shape
Capo fret 7
E = I = A-shape
A = IV = D-shape
C#m = vi = F#m-shape
Capo fret 9 (this is now becoming difficult to play so far along the neck).
E = I = G-shape
A = IV = C-shape
C#m = vi = Em-shape
I hope that helps.
ps
I am surprised to see you list A7 as a chord being used in the key of E.
That would mean the IV chord is being played as a dominant 7 chord.
That is not usual.
If music is purely diatonic with no unexpected chords then it is the V chord and the V chord only that would be played as a Dominant 7 type.
The IV chord - if extended to a 7th type - would be Amaj7.
It may be worth checking the chord chart again.