The first appearance of porn fairy is in Greek Quad beside the Sority house where the peep hole is. Click the fart button or action button he will appear. The porn fairy is almost in each outdoor area hidden. As well as a few indoor places. Just keep clicking things. Each time you find him he gives you money or secrect tokens or mini game help items.

Locations:

Peep hole near Sority house - Greek Quad
Alley below Larry's dorm window - Main Campus
Alley "Twice" - Crappy Streets
S & M Stage - Power Station V.I.P. Lounge

Few other locations cannot remember though

Happy Hunting!!!