Cameron Crowe has said that if he knew this scene would not have been in the movie, he wouldn't have made it. They couldn't secure the rights to the song and so it was cut. It's available on the special edition DVD set but you still have to play your own copy of the song along with the video. I've merged the two together so you can enjoy the scene the way it was intended.
Who is the guy in green? That's Jesse Caron, playing the role of Darryl, the boyfriend of the older sister, played by Zooey Deschanel. The only other time we see him is when the sister is leaving home. Darryl is helping pack up the car. (I can't imagine how bummed Jesse was when he found out this scene was cut.)