Lyric discussion by seraphim1 

The song maybe referenced as sexual, in fact, this was what I perceived initially. However, I would liken "you & your friend" as a person with their guitar. It wouldn't be far fetched, as some guitarists give their companions certain names. For example, let's not forget B.B. King and Lucille. During the course of the song, both the lead and pedal steel guitar are in a "call and response" arrangement. Knopfler could be asking someone when they are available to hook up and play; that quintessential love making between both instruments. Imagination doesn't necessarily have to be carnal sexuality, it could be that he envisions the music he could make with someone.

P.S. If you could see Knopfler and his expression when speaking to Jeff Baxter about smelling guitar catalogs, then anyone would know he's a "sex machine" when it comes to playing the guitar and bonding with another person during a session.

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