To perform this glitch start the 1st level and when you stop running away from the gunship you will die and gain Force Points (the save point at this location makes it easy to get unlimited Force Points). If you use a rubber band on your controller you can force your character to always run so after dying your character will begin running again and repeat the cycle automatically. All you have to do is allow the game to remain idle in this state and you will receive easy Force Points.
Search for the room on the second level with the Jabba the Hut hologram and several golden Guybrush Threepwood statues. Then destroy the three machines in the room and the holocron will appear from the Jabba hologram.