Hurkyl, by handle I meant a closed interval attached at both ends (i.e. just visualize the diameter on the outside), and by a long chain of spheres I meant exactly what you drew:
"However, I think I now understand the right covering space -- alternate gluing intervals to spheres in a chain:
...-O-O-O-O-..."
A real line with a string of spheres tangent to it would be the universal cover of a one point union of a sphere and a circle.
In general if X is simply connected, the universal cover of the one point union of X and a circle should be a real line with a string of X's each attached at one point, and the univ cover of X plus a (skinny) handle, would be your picture with X's instead of O's.
I agree a "handle" is usually something else, but I just tossed that word off informally thinking it was obvious what I meant, since a diameter is an interval. or maybe I'm losing my ability to communicate.
I.e. I meant a real world handle, like a wire handle on a bucket, not a mathematical handlebody (by the way, what's the univ cover of a bucket?). Sorry for the lack of clarity and precision. Most people have done this homework problem for a sphere and a circle joined at one point, so i was reducing it to that same picture by putting the diameter outside the sphere. I.e. you still do it by cutting the circle (the handle) apart in the middle, and then joining an infinite number of them together into a chain.