In 2004, the band released New Roman Times, their first studio album of original material in 15 years, which was well-received by critics and fans. A concept album, the record detailed the rise and fall of an idealistic Texan whose disenchantment following a stint with the American military redirected him towards organized terrorism. The album featured contributions by many Camper Van Beethoven associates, including Pedersen, Immerglück, Molla, and Hickman.'

A limited-edition live concert disc was also released, In the Mouth of the Crocodile, capturing a 2004 performance in Seattle. Segments of a 2004 performance in Chicago were released the following year as Discotheque CVB: Live in Chicago. In 2005, the group began consistently performing as a five-piece with Funaro on drums, although Pedersen, Immerglück and even Molla occasionally reappear as guests.

The band frequently tours with Cracker, and in 2005 the two groups started an annual three-night "Campout" at Pappy and Harriet's Pioneertown Palace in Pioneertown, CA, in which they and several other bands perform. The Campout has seen appearances by Built to Spill, John Doe, Neko Case, and Gram Rabbit among others.

A compilation of greatest hits titled Popular Songs of Great Enduring Strength and Beauty was released by Cooking Vinyl Records in June 2008. Popular Songs features eighteen of Camper Van Beethoven's most beloved genre-mutating tracks that span from their groundbreaking 1985 debut Telephone Free Landslide Victory to their 1989 effort Key Lime Pie. These songs retrace the band's broad, and often eclectic influences - from punk rock ("Club Med Sucks") and ska ("Border Ska") to Eastern European flavored instrumentals ("Skinhead Stomp") and two-step country ("Sad Lover's Waltz") to their own whirling dervish of psychedelic pop ("Circles"). Also included are the early college radio favorites "The Day Lassie Went To The Moon," "Good Guys & Bad Guys" and, perhaps their most well known number, "Take The Skinheads Bowling," which is still a staple at alternative, college and rock radio to this day. Fans of Michael Moore's controversial 2002 film Bowling For Columbine are also surely familiar with this track as Teenage Fanclub's version of it was featured as the movie's title track.