Watch the '61 SGLP: A Section online guitar lesson by John Jorgenson from Eclectic Electric: 61 SGLP
The second phrase starts exactly the same as the first phrase, but instead of the rocking back and forth between the A and G, you get another hammer-on lick. Again, I'm muting with my right hand in between the chords, hammering on from open A to B, playing the open D string, then playing it again (open A to B), and then playing D to E on the D string. You can leave the D ringing just a little bit. You'll notice that I don't play a full E chord, I just play the E bass note and let it ring.