A few years ago he was interviewed on "60 Minutes" and that is exactly the appearance he has, even for the TV cameras. He was semi-coherent and flighty; at times he made statements that were meaningful and other times I really didn't know what he was talking about as he gave rambling and unresponsive answers to many questions. I would probably recognize him if I saw him on the street, but I can understand why someone would think he was a vagrant. Also, to say he was out of place in the neighborhood where they found him would be a bit of an understatement. Easternder, if he was walking around the Hochelaga/Frontenac neighborhood and the Montreal cops stopped him and asked him what he was doing and he said, "I am looking at the houses", what do you think would happen?
By the ways, I think his song "Lay Lady Lay" is one of the greatest masterpieces in the history of folk/rock music. It's an amazing and extremely original song:
http://www.youtube.com/watch?v=VfF0uHekcc8
This video has a collage of pics of a young Dylan and a young Joan Baez, another folk singer who sang the classic "The Night They Drove Old Dixie Down." Dylan spent a lot of time fucking her in the 1960s.