Sliding chords from one fret to another is a technique often used in rhythm guitar playing. The slide is indicated by a line between the chords accompanied by the letter S. The following solo makes use of this technique with the top three notes of a 9th chord.
Notice also the alternation between single note riffs and chords. Take it slowly and work on it with a metronome or drum machine until you can play the whole thing without losing your timing. Then gradually increase the tempo until you can play it along with the CD.