In September 2006, Bird signed to Fat Possum Records, and in March 2007 he released his third post-Bowl of Fire album, "Armchair Apocrypha". The album was recorded in collaboration with electronic musician Martin Dosh, and includes a track composed by Dosh (with lyrics by Bird) entitled "Simple X". This song first appeared without Bird's lyrics as "Simple Exercises" on Dosh's 2004 release "Pure Trash". The album was produced by Ben Durrant (who had worked on Dosh's "The Lost Take"), and also featured Haley Bonar and Chris Morrissey. In advance of the March release date, "Armchair Apocrypha" was leaked to the Internet in January 2007. The album went on to sell over 100,000 copies.