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I interpret the song as being a description of a drug deal.
Do—a dear, a female dear
A female dear can be a loved one—mother, aunt, sister, grandmother, etc.—but in this context, she’s more likely a gangster’s moll.
Re—a drop of golden sun
Golden sunshine is a street name for marijuana.
Mi—a name i call myself
Why would you call yourself by a name other than your own unless you are doing something illegal?
Fa—a long, long way to run
From the mountains of Laos to the streets of LA is a long, long way to run illegal drugs.
Sol—a needle pulling thread
A “thread” is a dose administered through a hypodermic needle.
La—a note that follows Sol
An additional fix.
Ti—a drink with jam and bread
“Jam” is another street name for marijuana, this time mixed into a drink and paid for with cold cash—bread.
That will bring us back to Do
The deal is complete.