[1] The duo then spent time working on their book publishing company Exact Change, with no plans to return to recording, until producer Mark Kramer urged them back into the studio.

Following the release of More Sad Hits, Damon & Naomi were contacted by Kate Biggar and Wayne Rogers, whose band, Crystalized Movements, had recently lost its rhythm section.

In 2013, that initial mix (including a heretofore unreleased track) was released as The Wondrous World of Damon & Naomi, Bootleg Edition on the band's own 20/20/20 label for Record Store Day.

During 2004, Damon had a book of poetry published (The Memory Theater Burned) and the duo also worked on pulling together a double DVD of Galaxie 500 videos that was released by Plexifilm.

Damon & Naomi released their seventh studio album False Beats and True Hearts on May 9, 2011, once again on their |20|20|20 label and on Broken Horse (UK & Europe).