I still sometimes struggle to get that one oddball chord, but it's amazing how easily I get basic chord progressions and song structures now after some practice and applying myself. I often sit down at the guitar now and play the right key and chord immediately with the first chord I hit.
I just put my IPod on shuffle with guitar in hand and play to whatever comes up. Last night, I figured out "What About Us" by The Coasters and most of "Jeepster" by T. Rex. Today, I figured out "Hello Josephine" by Johnny Rivers, "The Oldest Baby in the World" by John Prine, "Pass Away" by Chuck Berry, "Met a Little Girl on Her Way to School" by The Steve Miller Band, and the basics of "Tell Ol' Bill" (in B flat) by Bob Dylan. Onward and upward. If I can do it, so can kids and beginners.