I think "Now I'm in memory" is supposed to be "Now a pained memory" as in a painful memory has somehow become a cherished (and thus no longer painful) story.
This song seems to be referring to the relationship that Stuart had with Isobel Campbell in the mid or late 90's, and there's a theory that Isobel had an affair with Aidan Moffat from the band Arab Strap when Belle and Sebastian and Arab Strap were both playing gigs in London together. That's what the song The Boy With the Arab Strap is about. Although it could have been someone else that Stuart was dating who had an affair with Aidan, not necessarily Isobel.
I think "Now I'm in memory" is supposed to be "Now a pained memory" as in a painful memory has somehow become a cherished (and thus no longer painful) story.
This song seems to be referring to the relationship that Stuart had with Isobel Campbell in the mid or late 90's, and there's a theory that Isobel had an affair with Aidan Moffat from the band Arab Strap when Belle and Sebastian and Arab Strap were both playing gigs in London together. That's what the song The Boy With the Arab Strap is about. Although it could have been someone else that Stuart was dating who had an affair with Aidan, not necessarily Isobel.
But the lines
Love and pain and sorrow Keep the band together
and
Making plastic records Of our history
would suggest he's talking about Isobel.