The $100,000 sex film that Paul and Todd talk about is "Deep Throat."
The gay-themed adult movie that features in the film, Boys in the Sand (1971), is a real film. It was, in fact, the first gay porn film to have an official premiere at a mainstream theater (55th Street Playhouse in New York City), and was the first such production to gain recognition from mainstream publications like Variety (which gave the film a positive review).