The next time Dylan played nearby, he invited Jobs to drop by his tricked-up tour bus just before the concert.
When Dylan asked what his favorite song was, Jobs said "One Too Many Mornings." So Dylan sang it that night.
After the concert, as Jobs was walking out the back, the tour bus came by and screeched to a stop.
The door flipped open. "So, did you hear my song I sang for you?" Dylan rasped. Then he drove off.
When Jobs tells the tale, he does a pretty good impression of Dylan's voice.
"He's one of my all-time heroes," Jobs recalled.
"My love for him has grown over the years, it's ripened.
I can't figure out how he did it when he was so young."
A few months after seeing him in concert, Jobs came up with a grandiose plan.
The iTunes Store should offer a digital "boxed set" of every Dylan song every recorded,
more than seven hundred in all, for $199.
Jobs would be the curator of Dylan for the digital age.
But Andy Lack of Sony, which was Dylan's label, was in no mood to make a deal without some serious concessions regarding iTunes.
In addition, Lack felt the price was too low and would cheapen Dylan.
"Bob is a national treasure," said Lack, "and Steve wanted him on iTunes at a price that commoditized him."
It got to the heart of the problems that Lack and other record executives were having with Jobs:
He was getting to set the price points, not them. So Lack said no.