In Capri or Amsterdam
on a lulu horse I am

The story:

While listening to this song in July 2009, I told a fellow passenger on a boat that I loved this song but I've never know what exactly a 'lulu horse' was. She looked at me stunned and said s l o w l y like I was retarded "Honolulu or Siam". My husband who had all these years ALSO thought they were saying 'lulu horse' never even stuck up for me and admitted that he had missheard the same words...the dog!