I'm glad that I'm not the only one who heard, and I still say it sounds more like, "Down on the corner houdy in the street". As apposed to "out in the street." But here's a less well known song. I heard a local band playing Springstien's "Tenth avenue freeze out". I could sware it sounds more like "Dead devil in the freezer." I asked a band member if that was what it was. He cracked up.. But I found out I'm not aloan in hearing it. Makes more sense if you ask me.
A childhood belief about misheard lyrics

others believed things like this
- I used to believe the Beastie Boys were a boy band. Well, the name sounds similar to Backstreet Boys!Anon
- I used to think the Back Street Boys were black. I also thought Seal was a boy band. — Tufty
- i used to believe the song "band on the run" was "band on the rug"— someone
- I used to think thunder sounds were called "Boombies" and I would say
"Boombies!" if I heard lightning.— James the Great - I heard a mother in the street tell her young son not to pick his nose...because his head would cave in. — Ruby
- I used to believe that a street sign that read "Dead End" meant that there were dead people buried there.Anon