I've been trying to learn to playy by ear for 2 months now and I'm getting really frustrated with it. I can work out solos, but I have an extremly hard time with chords (not power chords) in a song. Does anyone have any suggestions or web sites that help train your ear? I was thinking of trying that Perfect Pitch program in the magazines. Does anyone have any expereince with that?
"If my baby don't love me no more,
well I'm sure her sister will." -Jimi "Red House"

1983 Strat '57 Reissue
1964 Gibson ES-330
Dr Z Maz 38
Fender Pro-Junior

It will take time. You can't expect to be able to do it all perfectly right off.
Don't get too fet up about it being 100% perfect.

I also have lots of trouble with chourds. I don't know weather there's any other special way to do it. I know it's something to do with being able to hear the intervals but not sure.
Me and my friend do this:

We both have guitars and we stand back to back. I strum a chord and he has to name it. If he gets it right, he strums a chord and I name it.

By ear I know E minor A minor G major A major E major D major D minor F major and C major. It takes a damned long time and barre chords are hardest to get.
Sat in a lab, curing diseases. They actually LET me play with chemicals!
but as a helpful hint
you know powerchords because you recognise the 1st and the 5th right? its easily noticed because yoyu've heard it in ALOT of songs.
I suggest you play dominant chords (7th chords, e.g. 7th, major 7th, minor 7th) and recognise the sound that the seventh note makes with a chord.
try this with alot of chords to get used to it.
i suppose start out with normal chords, i.e. major minor, because they contain only 3 notes. The 7th chords contain 4 and then u can branch out.
good luck, its a real helpful skill to have, to recognise songs and play along with them without neccessarily learning it
go in a logical order. play a song and find the tonic chord. then try to hear when it comes back. next, learn what a V sounds like, and what it sounds like going to I. listen for that. learn II V I, IV V I, etc. learn what a circle of fifths progression sounds like. then learn what secondary dominants sound like, especially the common ones. itll be easier to learn that way.
"I see my light come shining from the west down to the east
Any day now, any day now I shall be released"

Know any good teachers in NY, especially skilled in teaching ear training? Tell me