It's not about Syd tripping on LSD in the woods. It's just that kind of thing that gives Syd a bad name. He was a genius not just some trip head.

I believe it's Syd scorn for the people around him.

"Emily tries but misunderstands"

Syd turned his back on the sound of the Floyd just one and a half years later. "Emily" is a name given to the innocence of the hippie generation, however Emily "misunderstands". We is unaware of what Syd probably saw as the real mission of the hippies.

"She often inclined to borrow somebody's dreams till tomorrow"

What Syd is saying that the innocence hippies who try but misunderstands should get their own dreams as opposed to borrowing somebody elses.

After Syd sings "See Emily Play" their is the famous section of mad demented guitar instrumental. This seems to be the sound of Emily at play. The tone of the instrumental piece suggests that Syd is dissatisfied with the Emily characters and even making them out to be slightly evil. This may of been bought on by his paranoid state of smoking dope everyday, just like every other band. It wasn't beamed down to him from a UFO while he was sitting on a layline tripping. He wrote the song for a concert for Games for May in the Elizabeth Hall. YES, I know Syd said he "received" the song in a interview but he also said he was "full of dust and guitars" in another interview and you can't really believe that.