I would not use naphthalene in the way that you mention. Besides the terrible smell that would leave on your bed that you sleep on, there are health issues with its use.
Naphthalene | Technology Transfer Network Air Toxics Web site | US EPA (http://www.epa.gov/ttn/atw/hlthef/naphthal.html)
I have never had to deal with bed bugs, but reading about them, and with my education and experience, I would say that bed bugs have similarities to roaches in that they like to hide in cracks and crevices, come out at night, and the control methods are similar in some respects.
If this applies, your box spring mattress might be most problematic. It would be great if you could start with a new bed, but I can understand how that might not be possible. See the link below for how to set up your bed so that bed bugs can't crawl up the bed posts. Look for their hiding places. Look for their evidence = fecal blood spots and odor. I would bet there are some hidden spots where you will find many of them lurking in one place. Treat those hiding places with a legitimate crack and crevice insecticide. Use the same insecticides that are used for roaches. Seal up all the entrances to your bedroom as best you can. Use tight fitting screens on the window. Get rid of all the animal nests that might be infesting the rafters, etc. Good luck.
Bed Bug Management Guidelines--UC IPM (http://www.ipm.ucdavis.edu/PMG/PESTNOTES/pn7454.html)
