A wide release on the Plug Research label followed in the spring of 2006 and was supported with a European tour and a few shows around the United States.
Production on the New Steam EP began in late 2006 and the band recorded steadily through the completion of its second full-length album.
We Were Enchanted was released in April 2008 on Plug Research and Shrug Records and supported with shows in the Netherlands and the American Midwest.
In recent years the band has stabilized into a quartet of Lambert, Gillian Lisée (Fruit Bats, Califone), Seth Vanek (Tiny Cover Band, THIN HYMNS), and Sam Wagster (Cairo Gang, The Father Costume, Fruit Bats).
Guilty Rainbow won praise from music writers such as Collin Anderson of Tiny Mix Tapes, who called it "one of those rare albums that starts out great and gets better.