Well, there was more to it than just that. He said that he would ‘get involved’ by insisting that this movie specifically be highly marketed in the United States. However, Bruce McDonald didn’t feel he did a good enough job, so there are hard feelings between the two of them. Additionally, in the end, Rolling Thunder made some changes to the film that McDonald didn’t like, which added fuel to the fire.
Yes, the Headstones broke up, which really, really sucks. They’ve said they might just be taking a break and get back together in the future. It could be permanent, though.