In 1982, the band, which had started in 1980, had yet to make a single that even approached the minor success of their previous band. Their first album was plagued by management troubles, and by the time they were recording "Sweet Dreams," they were reduced to recording in an improvised "home studio" (read: attic of a warehouse) and were in-between labels.
Also, they were really weird.
Their arguments became more severe--which tends to happen when you combine artists with poverty--to the point where Lennox could not take it anymore and threatened to leave. Then, with a cold suaveness more easily expected from James Bond than a pasty synth-pop composer, Stewart replied "Okay, fine, you don't mind if I go ahead and program the drum computer then, do you?" (he's British, so we don't know if "drum computer" is a euphemism for something filthy, but we'd guess that, no, it is not). And there, with Dave Stewart fucking around on a drum machine, and Annie Lennox curled up on the floor sobbing, commenced what is likely the most awkward, creepy and uncomfortable recording session since Phil Spector held a gun to Leonard Cohen's head.
While screwing around, Stewart accidentally reversed a synthesized bass line, and holy shit did it sound badass. Badass enough that Lennox "could not resist" getting on her keyboard and laying down a synth line. The words just came to her and she improvised the lyrics and vocals right there in one take. From the looks of it, they probably made up the "plot" of the music video on the spot right then too.
Pretty much all you need to know about the music video.
Of course, this incident just followed the standard behavioral instinct of "if you're in the middle of an argument that angry sex can't solve, just get on the computer" that most guys possess. Except instead of playing World Of Warcraft until four in the morning, Dave Stewart put together an international hit song, and married one of the chicks from Bananarama. Kind of puts your life in perspective, doesn't it?
via cracked.com