The explanation given by Craig Brougher seems to be quite correct.  
M. Preatorius (in 1619) called the hurdy-gurdy a "Bawren um umblauffenden
Weiber Leyre"; this is Medieval German, which can be translated as "Lyre
of Farmers and Frivolous Women".  After all, "ein umlauffendes Weib" is a
tramp, walking the street.  Nowadays viewed as sinners, but in medieval
times at least tolerated, if not accepted as normal.

The famous red-light district in any harbour has a function, remember.
After sailing for six months or so, there was a certain need for, let's
say, a kind of social activity, and the sailors had money in the pocket.
The mayors tolerated (and still do) a certain amount of "lyre-ladies",
but they concentrate it in a small area to keep things under control.

A "hurdy" is, if Preatorius and Craig's dictionary are correct, another
word for "tramp" or "whore".  "Whore" is translated in Dutch "Hoer", 
but in German it is "Hure", in which "hurdy" can be recognized as a
diminutive form of "Hur", I guess.  I do not possess an English etymo-
logic dictionary.  I do have, however, a brother-in-law who happens to be
an English translator, and I'll ask him to check this.  Will let you know
soonest.

Bye, 
Jan Kijlstra

 [ Other words to ponder are winch, wench, and the Gordian knot.  The
 [ folks speaking the German group of languages (incl. English and Dutch)
 [ all love imitative word-sounds and word humor.  -- Robbie