Question: Does anyone know how the effect of Kermit riding the bicycle was done?
Answer: The closest thing to an answer is here, Martin Becker's obituary. His family states that it was a robotic Kermit on a bicycle. Outside of that, everyone else associated with the movie has been quiet on the subject. http://www.fridaythe13thfilms.com/saga/part5/martinbecker.html.
They used gyros in the wheels - Martin Becker made the first self-driving bike for that movie-now the same tech is used in the self-driving bikes seen in the Netherlands. -Diana Becker, Martin's widow.
Answer: Yes.
Tobin OReilly