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Brothers Mark and David Knopfler, born in Scotland but raised in Blyth in the northeast of England, and friends John Illsley and Pick Withers from Leicester in the East Midlands, formed Dire Straits in London in 1977. Withers was already a 10-year music business veteran, having been a session drummer for Dave Edmunds, Gerry Rafferty, Magna Carta and others through the 1970s; he was part of the group Spring, which recorded an album for RCA in 1971. At the time of the band's formation Mark was working as an English teacher, Illsley was studying at Goldsmiths' College, and David was a social worker. The band was initially known as the Café Racers. In 1977 they recorded a five-song demo tape which included their future hit single, "Sultans of Swing", as well as "Water of Love" and "Down to the Waterline". After a performance at the Rock Garden in 1977, they took a demo tape to MCA in Soho but were turned down. They then went to DJ Charlie Gillett, presenter of Honky Tonk on BBC Radio London. The band simply wanted advice, but Gillett liked the music so much that he played "Sultans of Swing" on his show. Two months later, Dire Straits signed a recording contract with the Vertigo division of Phonogram Inc. in October 1977. The group's first album, Dire Straits, was recorded at Basing Street studios in Notting Hill, London in February 1978, at a cost of £12,500. Produced by Muff Winwood, it was first released in the United Kingdom on Vertigo Records. That year, Dire Straits began a tour as opening act for Talking Heads, after the re-released "Sultans of Swing" finally started to climb the UK charts. In July 1980, the band started recording tracks for their third album. Produced by Jimmy Iovine, with Mark Knopfler also sharing credit, Making Movies was released in October 1980. During the recording sessions, tensions between the Knopfler brothers reached a point where David Knopfler decided to leave the band for a solo career. The remaining trio continued the album with session guitarist Sid McGinnis on rhythm guitar, although he was uncredited on the album, and Roy Bittan from Bruce Springsteen's E Street Band guesting on keyboards. In his review for Rolling Stone, David Fricke wrote, "Making Movies is the record on which Mark Knopfler comes out from behind his influences and Dire Straits come out from behind Mark Knopfler”.