Sea Speed said:
Id bet q lot of money that the second one was not their first appearance on a swisha house mix
Found this below on Chamillionaires biography and wikipedia. It was on Swishahouse Choppin em up Part 2, its the only freestyle Watts ever did with Paul Wall and Chamillionaire from my knowledge. In the comments on that youtube video, people are also saying its their first freestyle ever recorded.
After proposing to do promotions for Watts' company, the Swishahouse, Chamillionaire and Paul Wall came to Watts' studio and convinced Watts to allow them freestyle on an intro to Watts' radio show on Houston's 97.9 The Box. Watts, who himself was convinced to rap on the record, enjoyed the freestyle so much that he put the verses on one of his mixtapes.This is from their wikipedia:
Paul and Chamillionaire convinced Watts to let them rap on his radio show and put the verses on one of his mixtapes. That mixtape was titled Choppin Em Up Part 2, which was released in mid-1999. The freestyle became so popular locally that Chamillionaire and Paul Wall became regular staples on Houston's mixtape circuit, appeared on several of Watts' mixtapes and became permanent members of Swishahouse.