From Homestar Runner Wiki
Naked Ned is a character in Peasant's Quest. He hides behind a tree near the Wavy Tree. Usually when you attempt to talk to him, he gets scared and runs away. You get his robe later in the game to dress like a peasant. One of The Three Keepers of Trogdor may ask you a Trog-Trivia question about him as well.
In his 8-bit incarnation, Naked Ned is possibly a reference to Ned, a balding naked-man doll with suction cup hands who represents "The Futility of Man". His first major appearance was in the comic strip For Better or For Worse as a cherished piece of student-residence kitsch. His doll incarnation is anatomically correct, but he has accumulated a pair of boxer shorts. The live-action version of Naked Ned (played by Neil Steinberg) looks somewhat less like Ned the suction-cup doll.
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