The song was first heard in Wiggledance Live In Concert 1996 and then had it's first recording in 1997. "Quack Quack" had the same thing happening.
Transcript from Wiggledance (1997)
Greg: Now please, Captain Feathersword. No more juggling.
Captain Feathersword: No more juggling.
Greg: No more dancing.
Captain Feathersword: No more dancing.
Greg: Just stand very, very still. Just stay right there, and I'll tell everybody what's going to happen. It won't take very long.
Captain Feathersword: Okay, Greg.
Greg: Thank you very much. (turns to audience while Captain Feathersword runs off the stage) Now, as I was about to say, it's a very, very special time of the show.
Greg: He's what? He's gone? Well, where did he go?
Captain Feathersword: (arrives riding on a unicycle) Whoa, ho, ho! Do, be, do, do, do, do.
(Greg laughs while Captain sings the Nya Nya Nya song.)
Greg: I said no juggling and no dancing. I didn't say anything about…
Captain Feathersword: Wow! (flailing arms) Whoa! Whoa Greg! Woowww.
(Captain yells as camera changes to his perspective as he approaches a backdrop. Camera changes to Captain crashing into the backdrop and falling backwards and flipping over once. )
Greg: Oh dear, Captain, are you okay?
Captain Feathersword: Oh. Yes, I think I am, Greg. (Greg helps Captain up while he staggers about. Anthony arrives with the unicycle.)
Greg: Captain, Captain, are you alright?
Captain Feathersword: (holds head briefly) Ooh, yes, I think I'm okay, Greg. But what about my bike? Is my bike okay?
Anthony: Well, it seems to be broken. There's only one wheel.
Greg: Oh, we better get it fixed then. (Anthony and Greg leave.)
Captain Feathersword: Greg, while you get that fixed, how about I show everyone my special new dance. Here we go now, me hearties.