On the Beach Lyrics
I hope it don't turn away
The world is turning
I hope it don't turn away
The world is turning
I hope it don't turn away
But I can't face them day to day
I need a crowd of people
But I can't face them day to day
But I can't face them day to day
I went to the radio interview, but I ended up alone at the microphone
Get out of town, think I'll get out of town
I follow the road, though I don't know where it ends
I don't want to see it turn away

Yes, it is a Neil Young cover. Radiohead (or more specifically, Thom and Jonny) did it during an acoustic set for a radio broadcast. Quite an appropriate song for such a situation, given the lyrics.
I think they did a good job with it (Thom's voice suits the song beautifully), but it's a great song in the first place. Neil Young has written many amazing songs, and this is one of them. The original is worth checking out, if you're not familiar with it.
I think it's about fame and mixed feelings that come with reaching it. The narrator needs people to like his work, but at the same time he can't face them and wants to get away. Even though he's reached a high point, he's still not satisfied ('the seagulls are still out of reach').
'Though my problems are meaningless/that don't make them go away' is such a great line to sum up how the general world sees famous people. Someone else's problems might seem trivial because of their station in life, but that doesn't make their problems any less difficult for them to deal with. Everything is relative.
Such a sad but brilliant song. It's no wonder Radiohead have done four different Neil Young covers.

ive never even heard of this song...has it been released?

Actually, On the Beach is a Neil Young cover...I'm pretty sure of it.

I think it's more about someone who has gone past the crowning moments of his life, and everything he's ever done is slipping away from him.

I need a crowd of people But I can't face them day to day
Means he's moody, sometimes wants to be around a lot of people, but needs alone time, too.
All my pictures are falling from the wall where I placed them yesterday
Means life is changing....
Because the world is turning I don't want to see it turn away
Means the world is changing but he hopes it will still accept him