He started a new band with John Lawrence called Stavin' Chain and they signed with Thomas Ruf's Germany-based Ruf Records in 1998, releasing a single album, simply called Stavin' Chain, in 1999, before disbanding. Capps met Shainee Gabel, a young director who was filming a documentary called Anthem, and she ended up using several of his songs in the finished film. Capps had told Gabel about an unpublished novel his father, Everett Capps, had written, and once Gabel read it she knew she had to film it. She wrote a screenplay and the end result was the 2004 film A Love Song for Bobby Long, which featured Capps in a bit part and also used four of his songs as part of the soundtrack. The regionally released Grayson Capps album appeared in 2005 on Hyena Records followed by a solo debut proper, If You Knew My Mind, later that same year.
During this time Capps continued to make his home in New Orleans, but the Katrina disaster at summer's close in 2005 forced him to leave the city for Nashville. A second solo project, Wail & Ride, also on Hyena, came out in 2006. Ruf Records re-released Stavin' Chain in 2007, and another Hyena release, Rott 'n' Roll, appeared in 2008. After a couple of years in Nashville, Capps formed a new band called the Lost Cause Minstrels, made up of a crack group of Gulf Coast musicians, and began recording an album of the same name. Midway through, he decided to return to his home state of Alabama, where he, the band, and co-producer and partner Trina Shoemaker finished it. The Lost Cause Minstrels was released on Royal Potato Family Records in June of 2011. ~ Steve Leggett