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Roy Orbison claimed in interviews that the lyrics for this song came to him in a dream; he wrote the music once he woke up.
This song is featured in a key scene in the 1987 film Blue Velvet. Orbison initially rejected director David Lynch's request to use this song, but later made a video for the track with scenes from the film.
Shortly before he died, Roy Orbison recorded a follow up to this called "In The Real World" on his 1989 album Mystery Girl. (thanks, Edward Pearce - Ashford, Kent, England, for all above)
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Harry is Derek Smalls in Spinal Tap, Mark Shubb in The Folksmen, and Mr. Burns on The Simpsons