Yes, it was Geffen who pulled the DVD, not Frank Oz. (My understand is that Oz had provided the footage, which is from a black and white work print that never had all of its effects completed. Geffen apparently has a much better color copy of this footage, but still would not allow it to be released when the DVD came out again).
And yes, I have the first DVD, and the sequence, which I believe runs 26 minutes, is pretty damned wonderful, grainy film quality and all.
"Gif me the cobra jool!"