Just to add to the freakiness of the "hanging Munchkin" myth, here is a clip supposedly taken from a 1980s VHS release.
The footage is clearly different in the background. Compare it to the earlier clip posted, which is definitely a bird spreading it's wings. This is not. Something is hanging from the tree in the same position as the bird.
The footage was doctored. Whether it was doctored fairly recently to ADD the hanging Munchkin in, as a hoax, or whether the hanging Munchkin was removed to add the bird, who knows?
I do know that tracking shots like that, digitally removing and substituting a background, while foreground characters pass in front of it wasn't possible (at least not successfully fooling people) until around 1992 or so. It's gotten much easier to do with today's technology.
Still, it's possible.
But there is no denying that the footage seen in this clip is not the same as the footage in the earlier clip:
http://www.youtube.com/watch?v=P8YVeMwhDNI
"Jaws is the Citizen Kane of movies."
blocked: logan2, Diamonds3, Hamilton22