The title is a misnomer, since Hiatt's been with Capitol only since '95 and this classiest of roots-pop singer-songwriters has been recording since the '70s. The pre-Capitol labels (A&M, Epic, MCA, Geffen) each coughed up a few chestnuts, but they clearly drew the line. The soulful ''Have a Little Faith in Me'' is here in a lame rerecording, and where are ''Lipstick Sunset'' and other Hiatt classics? Suggested title: Some of the Best of John Hiatt. B


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