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I did too; I have it on a million CDs, but wasn't precisely sure what the reference was, only remembering she was mentioned in it.
I think people are/were meant to understand the others, though; Some of the REM actually makes reference to a group of people in a dream singer/lyricist Michael Stipe had recently had when he wrote it.
As for Joel's, I forget what "Pop-Up Video" said on/about it, but "Late Night With Seth Meyers" recently performed it with different lyrics, which were printed across the bottom of the screen as Seth sang them.