people talk about it suggestively a lot, something about prince, kim basinger and honey... but the version i've seen just has prince singing it with a mic stand in a dark room. is there some unedited version i'm not seeing?

There is an unedited version in his vault that contains Kim Basinger. It seems he changed his mind.

I dont think it is circulating at all. I've never heard of anyone who claims to have seen it.