Misheard Japan/Sylvian lyrics are already amply covered in this thread:
http://www.japansylvian.com/forum/viewtopic.php?t=579
But what are people's mishearings of other artists lyrics?
My worst examples are "I Surrender" by Rainbow, which I somehow misheard as "Aston Villa", and "Contagious" by Nirvana, which I used to think was "At the Tailors".
I also once knew someone who thought the first line of Madonna's "La Isla Bonita" (real lyrics: "Last night I dreamt of San Diego") was "Last night I dreamt of some dago."
And a Polish friend is convinced that the real lyrics of "Killing Me Softly With His Song" are "Pilimy soki nad Wisla" - the Polish for "We were drinking juices on the banks of the River Vistula"