The set of most of the movie, is the famed "Spider Bug of Lexington" located at 951 Moffatt Rd, Lexington, Oklahoma. A google search shows hundreds of pictures taken by people passing by over the years. These "tourists" were a plot point in the script that were filmed but scrapped in post production.
The Bug has been in place since at least the early 1980s when it was part of an attraction piece at a local auto scrap yard. The yard eventually closed, and for over 30 years the Bug sat alone with no explanation in the middle of an empty field.
Several delays pushed back the start of production. When the script was first written, Hwy 77 which appears throughout the film infant of the Bug was a two lane highway and the Bug sat far off the road. Around the time the filmmakers decided to make the film, the state decided to widen the road from two to four lanes, adding two lanes closer to the Bug which at times made traffic sounds difficult. Also new from the time the script was written to the time Production started was an industrial building built just yards away to the North of the Bug. Wanting to depict the original feel of the location which was alone and in the middle of nowhere, the filmmakers never pointed the lens to the North for the duration of filming, as to never show the new building.
In early talks about what the score of the project should be, Composer Nicholas Poss and Director Clayton Tramel both agreed that the music should rely partially on an accordion. Poss tried several digital methods of replicating the sound he was looking for, but eventually decided he needed to play an actual accordion. A working instrument was hard to find and new ones were outrageously priced for the films modest budget, so Tramel tracked down his Grandfather J.L. Tramel's old accordion that he had played in the 1950s, which his sister was in possession of. Poss played it beautifully, and the accordion that you hear in Bug Man, is the exact same accordion featured in the poster for Tramel's previous movie "Tell Me A Story: the life of J.L. Tramel."
Originally intended to be a similar themed movie but set in outer space.