You nailed that one.
Listen to Irish folk music and tell me that there's no connection between that and country music.
But still, there's a lot of black Southron influence there, too.
Play me a song Curtis Lowe, Curtis Lowe
Well I got your drinkin' money, tune up your dobro
People said he was useless, them people all were fools
Cuz Curtis Lowe was the finest picker to ever play the blues
"Listen to Irish folk music and tell me that there's no connection between that and country music."
And bluegrass music is directly rooted to Irish jigs and reels.
"Country music" as we know it is a descendant of ancient 'folk songs'.
Ironically, "House of the Rising Sun" is playing on VH1 Classics and though most people associate that song with the 60s and The Animals [or Frijid Pink] the song is actually a very old folk song.
Interesting take on it here;
http://www.straightdope.com/mailbag/mrisingson.html