Yes it was. Mick did a Q&A type thing with BBC which was streamed online before the release of Say You Will (I think it was mainly to shoot down rumors which had circulated at the time that Sheryl Crow was joining FM, as a member) and he said Tallulah Bardens recorded an album which was to be the first release on Tallman Records and as far as I know it never saw the light of day.
Please do post here if you ever hear about Smallwood's album ever coming out though.
John