It may not be Episode 3, but the Star Wars Kid makes a cameo in Tony Hawk Underground 2. (Thanks to Dan Beckett for the tip and original video clip.) Update: Here’s a high-quality video of the appearance with audio, thanks to Erik:
tonyhawk_starwarskid_high.wmv (WMV, 5.5MB)
Here are instructions for finding him, courtesy of Travis Ogdon:
“On the Boston level if you ollie through the glass windows on one of the buildings (it’s one or two to the left of the one where Ben Franklin is hiding) you land in a living room with a flat panel tv on the wall. If you stand in front of the TV Ghyslain gets up and shouts something about watching Star Wars (which you’re now preventing). Hitting O (on the PS2) will result in him showing off his moves.”
October 13, 2004: Joe Ford confirms that you can unlock the “Geeky Kid” character by beating the all goals in all levels in Easy Mode. They don’t refer to him as “Star Wars Kid,” which indirectly answers the question about whether he was compensated for his likeness. (He wasn’t.)
October 14, 2004: The THUG2 SWK video was featured on G4TechTV’s Screen Savers show yesterday. Erik has the video of the Screen Savers appearance. No mention of my site, and they mistakenly assume that Ghyslain was paid for his appearance. Tacky!