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This song is just plain beautiful! I get teary-eyed everytime I see this part of the film.

• Who's the lady with the log?
• We call her the Log Lady.

This is "Kdepak ty, ptčku, hnzdo m?" ("Where do you have a nest, bird?") and it is by Karel Gott.
Lyrics in Czech:
http://zpevnik.folktime.cz/zpevnik/gott-karel/kdepak-ty-ptacku-hnizdo-mas
Combined (Vzech and English) translation:
Kdepak ty ptčku hnzdo m
Where do u, little bird,have the nest (like question)
skr a zzem
Hiding place and rear
vdyť jetě lčky mlo zn
Well , u still know snares just a little
mlo zd se mi.
A little , It seems to me
Hej, břzo bl, skloň se n,
Hey , white birch, bend lower down
dej ptčku nruč svou a skr
Give to little bird your arms and hiding place
j pak můu jt a v dui klid
Then i can go and peace in soul
můu pak mt.
i can have (the peace)
Kdepak ty ptčku hnzdo m,
Where do u, little bird,have the nest
kam dnes půjde spt
Where are u going to sleep tonight
a snh a mrz d loukm plť
as far as snow and frost put to meadowland cloak
sm se začnu bt
alone i start to afraid
Hej, břzo bl, skloň se n,
Hey , white birch, bend lower down
dej ptčku nruč svou a skr
Give to little bird your arms and hiding place
j pak můu jt a v dui klid
Then i can go and peace in soul
můu pak mt.
i can have (the peace)