"I thought that we were friends."
Translation:Ich dachte, wir seien Freunde.
I got this as a multiple choice question, and selected both ' Ich dachte, wir wären Freunde.' and ' Ich dachte, wir waren Freunde.' In my understanding they have different meanings (in the first one i'm saying i thought we were friends, but now it's clear we never were, in the second, i used to think we were friends, but now i changed my opinion), although they can have the same English translation. Where am i wrong?
I don't know the detail but the first part does not subordinate the verb in the second part. I don't even fully understand but this might help: http://german.about.com/library/weekly/aa010910a.htm
It accepts it in final position too (I didn't lose a heart because of that).
Hmm. From that link:
"Substandard German: Some German-speakers these days ignore the verb-last rule, particularly with weil (because) and dass (that) clauses. You may hear something like "...weil ich bin müde" (because I'm tired), but it's not good German! One theory says this bad-German trend comes from the influence of English, but in any case it is not acceptable German. Your German should reflect the word order rules outlined on this page!"