Sort of - they all know each other (as you probably know) and haven't seen one-another since the original fight with the Black Mage, so my guess is that it's just them being happy to see he's still kicking or something. ::P
at 1:17 the subtitles say bubble. Its Bobble as in a bobber for fishing "A true Empress would know that the Skaia you hold is a ruse, a (bobble), dressed up to (lure) the great thief Phantom out of hiding." Im pretty sure it says bobble but i could be wrong too.
Damn, I wish he said something like "You are most beautiful when you smile." rather than the "I prefer a woman with a smile on her face." line. Damn translation changes.