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So! From what I've read the Chain Melon is supposed to be exclusively given out by Jiji after you beat Machinedramon, but I encountered this spawn while nowhere near finishing the game (just recruited Elecmon/Patamon/Biyomon after going to Gear Savanna for the first time with my awesome Kokatorimon Sam).
The spawn point was in one of the first Savanna screens, the one with the vending machine, lots of trees, and the Akatorimon running around in the daytime. It was located on the south wall towards the middle, to the right of a tree in a little niche in the rocks. It was totally visible, not obscured at all. I saw the item and ran over, picked it up not knowing what it was, and read "Chain Melon". Wtf? Has this happened to anyone? I've tried coming back to the spawn point about twenty times but haven't had any luck finding another. I didn't take a screenshot but I could if anyone even cares lol, it'd just be nice to add to an item/spawn FAQ
I use the PCSXR emulator on my mac with a legit DMW1 cd to play, which could have something to do with it; still, I don't think my setup would cause spawn glitches.
So, I created a GameFAQs account just to get this out here since no one else seems to have seen a Chain Melon spawn! Lol I'm so glad an active board still exists for this ten-and-something year old game, it was my favorite as a kid.
Okay, got a third one: here are some pics for you guys. My Megaseadramon died immediately after taking these, I spent so long trying to get another Melon that I never even battled with him :c Oh the sacrifices I make.