Island Xtreme Stunts' remarkably long development history goes back to 2000, when Silicon Dreams Studio made a prototype featuring LEGO Island deforming in real time. After that version of the game got shelved, LEGO Media came to Silicon Dreams Studio with the interest of making a game off the Silk Road theme, an early version of Orient Expedition. It would have featured Pepper following the footsteps of his father, Bologna Roni. However, development on this version stopped when the LEGO Group cancelled the Silk Road. Some of the ideas would be later reworked to go with existing LEGO themes, however this attempt was short lived Later, Island Xtreme Stunts entered development in 2001 at Silicon Dreams Studio, with some developers already having worked on the setline tying into it back in 2000.

Sure, so Lego Island 3 wasn't a clear sequel to Lego Island 2. We had to work with Lego and understand their plans for which themes they were wanting to promote over the upcoming seasons that fit the timeline of the game's release. So early on the team were working on basic technology, a new engine to drive whatever the game was going to be that would utilise the new Playstation 2 hardware; myself, along with the producers from Silicon Dreams and Lego were trying to build the plans for taking Lego's product theme needs and building out a concept that fit. So at the time, they were discussing a product line up based on the Silk Road. Lego also had an adventurers theme, I can't recall if they were going to be built as exclusive sets or combined so that the Silk Road would become a subtheme of Adventurers. 
Dean Roskell, Lead Designer and Associate Producer at Silicon Dreams Studio
A render of Johnny Thunder piloting the Brickster's plane.