I saw this movie several times back in 1968-9. Luckily <unbeknownst to me at the time> I saw it in a theater that did not edit and cut it all up. Many (many, many) years later I purchased a video tape from one of the relatively reputable dealers. I was aghast to find the scene pretty much as Troy describes. I complained to the dealer since I had seen the original and knew what it was like. They actually put me in email contact with David Friedman. He explained that back then each theater would actually edit the film based on what they felt their local police dept would tolerate. He said back then he had no idea it would become a cult classic and they did not even keep a master copy of the film!! So basically he says unless someone comes up with an original 35MM in the closet of some theater, that scene is gone from moviedom. Believe me when I tell you that the scene was really superb in its uncut version. Even in the original there was some cutting back and forth to the lame, brain-dead hero. But it was so hot that it was probably a good thing it was not continuous. By the way, the scene definitely did NOT stop with her blouse! Only her boots remained -- Now THAT is a Western! And Marsha Jordan was pretty hot.
Review of Nude Django
