Lyric discussion by boomerstyle 

Probably about Tony (Kanal, No Doubt's Bassist). She's saying that after the break-up it was really difficult to be in the band together and have him play songs that were about him (basically all of Tragic Kingdom, i.e. "Don't Speak", "Happy Now", Return of Saturn). But time really healed their friendship, which amazing is still intact, and she observes that now they are able to recognize that each one has moved on (i.e. "Now you call me by my new last name" and " now we're hanging out with your new girlfriend"). She is just very happy that things are at a very good place with the two of them and very happy that they are back to being really, really good friends.

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