Yes, it does happen. The talking about you, that is. As a western guy in Thailand you'll stand out like a sore thumb no matter what you do and where you go. The simple fact that you're 'different' - rewards you with a near celebrity status in the eyes of many Thai folks (Thai women too). Even more so when you're way out of the big cities!
So... you might want to stay innocent about your Thai fluency for a little bit - and just listen in as the conversation bounces around you in all directions. Of course if you've ever tried to 'not listen' to someone talking, you'll know it's near impossible. But by being quiet amazing things can happen. Let me explain.