Michelle - I agree with Lori's interpretation of castaway dreams. It sounds very much like a goodbye song and yes the line is 'magic ONE, all our dreams are done'.
The song under the skin is more an intimate message to Stevie that he understands her pain and is there for her. My feeling when I first heard the song was that it was about Stevie and was a mature reflection on their relationship as it had turned out and how Stevie's life had ultimately not turned out as she would have liked.
Both songs are really rather sad.
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