Lyric discussion by rog27 

I believe in the first couple of stanzas tmbg are referring to how nostalgia can be dangerous if you dwell on and romanticize it. You lose track of reality and start imagining the way you and things were instead of realizing how they really were.

The rest of the song seems to use the imagery of sticking your hand in a puppet to illustrate that we can never just be ourselves. We always walk around flashing a facade...a projection of what we think other people want us to be. If the puppet head was "busted in"...if we could just be ourselves...things would be much better for everyone.

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