The songs on the album were initially demos that Tutmarc made for Suburbiac's producer Aaron Sprinkle to comment on for a follow-up on Fugitive Records.

Fugitive ceased operating and Tutmarc wrote songs about his growing dislike of the music business, including, "I Smell A Lawsuit" and "Cheer Up Baby" "My Paranoid Mind," "What If", and "Behind the Melody" (sung by Jason Holstrom).

New Old Friends was released independently in February 2004, with different artwork, showing Tutmarc and a few of the contributing musicians in a collage-style.

The album was eventually picked up by Damien Jurado's Seattle indie label Made In Mexico Records and rereleased in November 2004 with a new layout and artwork by Shane's brother, Brandon Tutmarc.

Tutmarc and band (including future Fleet Foxes leader Robin Pecknold on bass), undertook their first US tour in Spring 2005.