Koanic wrote:
The key might be that you can understand people you know, but not strangers.
This suggests that anxiety and performance pressure might be related to the problem.
Have you tried "not trying"? Letting your conscious mind get out of the way, and focus on nothing while they speak, and don't try to analyze what they're saying.
It sounds like you're trying to do a lot of active conscious processing, which interferes with allowing your subconscious to comrpehend the continuous info stream.
Do you have a source for the above, Koanic? Note that I do believe what you are saying. In fact, I really think that you are on to something with the above statement in bold. I am merely wondering if you found this information anywhere in particular, as I have had a lot of difficulty in the past with "understanding simple conversation" as the OP puts it, and I would love to do more reading on the topic.
The reason why I believe your post to have credence is because I noticed an amelioration of my difficulties after starting on anti-depressants to treat anxiety issues. However, for example, I still have much difficulty with being introduced to strangers. I am often so focused on making a good impression and reacting appropriately, to the point that I do not hear the other person's name, position, etc. Perhaps this has something to do with the "performance pressure" to which you had referred.
_________________
Scientia Potentia Est