When I first heard this song more than 10 years ago, I had no doubt that, 'played in my speedos' was what she was singing.
A broken stream of consciousness in a song wasn't too uncommon during the 90's so it didn't stand out to me. I also figured it was part of trying to reinforce her position as a sex symbol (not that she needed much help!)
Just last fall, in 2007, I was driving to a meeting, and for some reason could decipher the words she was singing as I had been unable to do before. Thankfully, no one was in the car with me to witness the light bulb go off above my head!