Live-action footage was shot as part of Ralph Bakshi's original vision to have the film be a combination of live-action and animated characters (like Who Framed Roger Rabbit (1988)). The only animated characters were Vinnie, Rozzi, Crazy, and Eva. The rest of the cast were live action characters shot on live action sets. This version was finished in the late 1970s. When it was initially shown to Warner Brothers executives, they told Bakshi that they loved it. A week later, they told Bakshi that the idea of having live-action and animated characters in the same frame would never work, as it was too unbelievable. Warner executives also referenced the controversy from Bakshi's film "Coonskin" (1975). He was forced to throw out all the live action footage and reanimate it. Bakshi, having to pay himself, took five more years to complete it around other projects before its official release in 1982.
One of the live action scenes that were removed was a scene featuring glam-punk band, New York Dolls.
A good chunk of the movie was shot during the night purely because it was easier for Bakshi to conceal things in the shadows.
Principal photography for Hey Good Lookin' began in April 1974.