Paulson Capital Corp SC13G 03-19-2004

Exhibit 1 

SCHEDULE 13G JOINT FILING AGREEMENT 

The undersigned and each other person executing this joint filing agreement (this "Agreement") agree as follows:

	(i)		The undersigned and each other person executing this Agreement are individually eligible to use the Schedule 13G in accordance with the Securities Exchange Act of 1934 and the regulations promulgated thereunder is attached and such schedule is filed on behalf of the undersigned and each other person executing this Agreement; and

	(ii)		The undersigned and each other person executing this Agreement are responsible for the timely filing of such Schedule 13G and any amendments thereto, and for the completeness and accuracy of the information concerning such person contained herein; provided, however, that none of the undersigned or any other person executing this Agreement is responsible for the completeness or accuracy of the information statement concerning any other persons making the filing, unless such person knows or has reason to believe that such information is inaccurate.

This Agreement may be executed, in any number of counterparts, each of which shall be deemed to be an original, but all of which, taken together, shall constitute one and the same instrument. 

	DATED: March 29, 2004		PAULSON CAPITAL CORPORATION

			/S/ CHESTER L.F. PAULSON

			By: Chester L.F. Paulson Its: Chairman of the Board



			/S/ CHESTER L.F. PAULSON

			By: Chester L.F. Paulson, an individual



			/S/ JACQUELINE M. PAULSON

			By: Jacqueline M. Paulson, an individual

SCHEDULE 13G
CUSIP No. 00023962Q209

	1.	Names of Reporting Persons. Chester L.F. Paulson and Jacqueline M. Paulson, as joint tenants I.R.S. Identification Nos. of above persons (entities only).

	2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ] (b) [ X ]

	3.	SEC USE ONLY

	4.	Citizenship or Place of Organization United States of America

Number of Shares Beneficially Owned by Each Reporting Person With:		5.	Sole Voting Power 0

		6.	Shared Voting Power 284,000

		7.	Sole Dispositive Power 0

		8.	Shared Dispositive Power 284,000

	9.	Aggregate Amount Beneficially Owned by Each Reporting Person 284,000

	10.	Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) [ ]

	11.	Percent of Class Represented by Amount in Row (9) 7.58

	12.	Type of Reporting Person IN
Chester L.F. & Jacqueline M. Paulson (together the "Paulsons") may be deemed to control Paulson Capital Corp. ("PLCC"), which wholly owns Paulson Investment Company, Inc. ("PICI). The Paulsons control and are the sole and equal members of the Paulson Family, LLC. ("LLC").
2

SCHEDULE 13G
CUSIP No. 00023962Q209

	1.	Names of Reporting Persons. Paulson Capital Corp. I.R.S. Identification Nos. of above persons (entities only). 93--0589534

	2.	Check the Appropriate Box if a Member of a Group (See Instructions) (a) [ ] (b) [ X ]

	3.	SEC USE ONLY

	4.	Citizenship or Place of Organization United States of America

Number of Shares Beneficially Owned by Each Reporting Person With:		5.	Sole Voting Power 0

		6.	Shared Voting Power 284,000

		7.	Sole Dispositive Power 0

		8.	Shared Dispositive Power 284,000

	9.	Aggregate Amount Beneficially Owned by Each Reporting Person 284,000

	10.	Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions) [ ]

	11.	Percent of Class Represented by Amount in Row (9) 7.58

	12.	Type of Reporting Person BD, CO
Paulson Capital Corp. ("PLCC") wholly owns Paulson Investment Company, Inc. ("PICI"). PLCC is a corporation and PICI is a broker-dealer.
3

Item 1.
	(a)	Name of Issuer Daystar Technologies, Inc.
	(b)	Address of Issuer's Principal Executive Offices 900 Golden Gate Terrace, Suite A Grass Valley, CA 95945

Item 2.
	(a)	Name of Person Filing This statement is being filed jointly by each of the following persons pursuant to Rule 13d-1(k) promulgated by the Securities and Exchange Commission under Section 13 of the Securities Exchange Act of 1934, as amended: (i) Chester L.F. Paulson and Jacqueline M. Paulson, as joint tenants and each individually (together, the "Paulsons") who are each 50% members of the Paulson Family, LLC. ("LLC"); and (ii) Paulson Capital Corporation, an Oregon corporation ("PLCC"), which directly wholly owns Paulson Investment Company, Inc., an Oregon corporation ("PICI"). The Paulsons and PLCC are collectively referred to as the "Reporting Persons". The Reporting Persons schedule 13G Joint Filing Agreement is attached as Exhibit 1. Information with respect to the Reporting Persons is given solely by such Reporting Persons, and no Reporting Person assumes responsibility for the accuracy or completeness of the information by another Repor ting Person, except as otherwise provided in Rule 13d-1(k). By their signature on this statement, each of the Reporting Persons agree that this statement is filed on behalf of such Reporting Persons.
	(b)	Address of Principal Business Office or, if none, Residence The Paulsons, PLCC's, and PICI's principal business address is: 811 S.W. Naito Parkway, Suite 200 Portland, Oregon 97204
	(c)	Citizenship The Paulsons are citizens of the United States of America, and PLCC and PICI are organized under the laws of the United States of America.
	(d)	Title of Class of Securities Common Stock for Daystar Technologies, Inc.
	(e)	CUSIP Number 00023962Q209

Item 3.		If this statement is filed pursuant to §§240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a:
	(a)	[ X ]	Broker or dealer registered under section 15 of the Act (15 U.S.C. 78o).
	(b)	[ ]	Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c).
	(c)	[ ]	Insurance company as defined in section 3(a)(19) of the Act (15 U.S.C. 78c).
	(d)	[ ]	Investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C 80a-8).
	(e)	[ ]	An investment adviser in accordance with §240.13d-1(b)(1)(ii)(E);
	(f)	[ ]	An employee benefit plan or endowment fund in accordance with §240.13d-1(b)(1)(ii)(F);
	(g)	[ ]	A parent holding company or control person in accordance with § 240.13d-1(b)(1)(ii)(G);
	(h)	[ ]	A savings associations as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813);
	(i)	[ ]	A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3);
	(j)	[ ]	Group, in accordance with §240.13d-1(b)(1)(ii)(J).

Item 4.		Ownership.
	(a)	Amount beneficially owned: The Paulsons may be deemed to be the beneficial owners of a total of 71,000 shares of Issuer Common Stock and 213,000 of Issuer Warrants (exercisable into 213,000 shares of Issuer Common Stock). The precise owners of these 71,000 shares of Issuer Common Stock and 213,000 shares of Issuer Warrants is described more specificalaly in this paragraph. The Paulsons may be deemed to control Paulson Capital Corp. ("PLCC"), which wholly owns Paulson Investment Company, Inc. ("PICI"). The Paulsons control and are the sole and equal members of the Paulson Family, LLC. ("LLC"). Through the LLC, the Paulsons indirectly own 0 shares of Issuer Common Stock and Warrants. The Paulsons collectively directly own 0 shares of Isseur Common Stock and Warrants. Chester Paulson directly owns 0 shares of Issuer Common Stock and Warrants. Jacqueline Paulson directly owns 0 shares of Issuer Common Stock and Warrants. T he Paulsons may be deemed to indirectly own 71,000 shares of Issuer Common Stock and 213,000 shares of Issuer Warrants through PICI. Pursuant to SEC Rule 13d-4, the Paulsons expressly disclaim beneficial ownership of the 71,000 shares of Issuer Common Stock and 213,000 shares of Issuer Warrants of which PICI is record owner.
	(b)	Percent of class: As of February 5, 2004 The Issuer had 3,531,333 shares of Issuer Common Stock issued and outstanding, as reported in the prospectus dated February 9, 2004 (the "Issuer Outstanding Shares"). The Paulsons actual and deemed beneficial ownership of Issuer Common Stock represented approximately 7.58% of the Issuer Outstanding Shares. PLCC's indirect beneficial ownership of Issuer Common Stock represented approximately 7.58% of the Issuer Outstanding Shares.
	(c)	Number of shares as to which the person has:
		(i)	Sole power to vote or to direct the vote The Paulsons have sole power to vote or direct the vote of 0 shares. PLCC has sole power to vote or direct the vote of 0 shares.
		(ii)	Shared power to vote or to direct the vote The Paulsons have shared power to vote or direct the vote of 284,000 shares. PLCC has shared power to vote or direct the vote of 284,000 shares.
		(iii)	Sole power to dispose or to direct the disposition of The Paulsons have sole power to dispose or direct the disposition of 0 shares. PLCC has sole power to dispose or direct the disposition of 0 shares.
		(iv)	Shared power to dispose or to direct the disposition of The Paulsons have shared power to dispose or direct the disposition of 284,000 shares. PLCC has shared power to dispose or direct the disposition of 284,000 shares.


Item 5.	Ownership of Five Percent or Less of a Class
If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following [ ].

Instruction: Dissolution of a group requires a response to this item. Not Applicable

Item 6.	Ownership of More than Five Percent on Behalf of Another Person
Not Applicable

Item 7.	Identification and Classification of the Subsidiary Which Acquired the Security Being Reported on By the Parent Holding Company
See Item 4(a)

Item 8.	Identification and Classification of Members of the Group
Not Applicable

Item 9.	Notice of Dissolution of Group


Item 10.	Certification


SIGNATURE

Paulson Capital Corp.
By:	/s/ Chester L.F. Paulson Chester L.F. Paulson
Title:		Chairman

After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct.

Date: March 29, 2004
	Chester L.F. Paulson
	By:	/s/ Chester L.F. Paulson Chester L.F. Paulson
	Title:		individually

	Jacqueline M. Paulson
	By:	/s/ Jacquleine M. Paulson Jacquleine M. Paulson
	Title:		individually


[	X	] Rule 13d-1(b)
[	X	] Rule 13d-1(c)
[		] Rule 13d-1(d)