The project was augmented by additional musicians, Paul Davies (electric guitars) and Gavin Griffiths (drums), who had played with other members of Karnataka in earlier bands.
The band toured the UK extensively with the new album, culminating in a show before an audience of die-hards at London's Mean Fiddler, which was filmed and subsequently released on DVD under licence to Classic Rock Productions.
The DVD, entitled simply In Concert, was well received by fans but frustrated the band, who still felt that the results did not fully reflect their acclaimed live performances.
Delicate Flame of Desire, the band's third album, was recorded with producer Steve Evans and mixed by Joe Gibb.
A double live album, Strange Behaviour, was released in mid-2004 to accompany what was to be the band's final tour with the existing line-up.
Rachel Jones decided to take time out from the music business and returned to college, although she appeared on recordings from other bands and occasionally took to the stage as well, most notably with Mostly Autumn.
The remaining members of the original line-up of Karnataka, Paul Davies, Jonathan Edwards, and Gavin Griffiths, along with Anne-Marie Helder, formed Panic Room in 2008.
The new Karnataka featured a line-up consisting of Jones and Carrera along with vocalist Lisa Fury, drummer Louie Palmer, and guitarist Enrico Pinna.
This new line-up of the band toured in Spring 2007 playing a selection of fan favourites and four or five new songs to provide a flavour of the work in progress.
Following Palmer's departure from the band later in 2007, Karnataka were joined by Ian Harris, who had previously played with a multitude of acts, including Chris Rea, Mica Paris and Nitin Sawhney.
Work on the band's fourth studio album The Gathering Light continued in 2007 although started in 2005 with all three writers; Ian Jones, Lisa Fury & Gonzalo Carrera.
"The Gathering Light stands true to Karnataka's heritage, yet illustrates significant artistic growth since the former lineup's Delicate Flame of Desire release six years ago.
progressive rock influences are more apparent [...] While their fans have waited a long time for this release, the care taken in the writing, recording and production of The Gathering Light has delivered an outstanding progressive rock album..."[2] In May 2010, Ian Harris, Gonzalo Carrera and Lisa Fury announced on their websites that for personal reasons they would be leaving the band.
Hayley was previously a lead vocalist with global phenomena Riverdance and Michael Flatley's Lord of the Dance.
2017 also saw a tour entitled 'End II End', which saw the band perform the albums The Gathering Light and Secrets of Angels in their entirety.