Interesting. I thought the "Tales from Jabba's Palace" and "Tales from the Mos Eisley Cantina" were retconned as just being the kind of wild stories you'd hear some old drunken spacers tell around the glow lamp, considering some of the stuff is contradicted by the Special Edition changes.
I don't own that particular book so I can't say that I've read the particular story in question. Can you quote any relevant passages? I also am less than familiar with SWGB, not having really checked it out since the demo... though that would be nice supporting source, even if it is a game. I'm sure the device would exist, the question is, is it what was really used on the Lars homestead...