Lyric discussion by Meatus 

Cover art for Naomi lyrics by Neutral Milk Hotel

It's allegedly about Naomi Yang, the bassist of Galaxie 500, an extremely influential band of the late 80s/early 90s shoegaze/dream pop movement. The biggest clue is "She walks through Cambridge," which is where she and her bandmates attended Harvard when they formed the band.

@Meatus Checking back in 7 years later, as it has since been confirmed that it is indeed about Naomi Yang. She made her own video for this song: https://www.youtube.com/watch?v=pw1CgT5wxaU&feature=youtu.be