LOL! That's one is a classic! Why on Earth would that be considered "banned"?
It's not banned at all... as a matter of fact, I have it on a VHS tape from Turner Home Entertainment, "Tex Avery's Screwball Classics, Vol. 2." It might have been banned from commercial television, though, as I don't ever remember seeing it on TV, and I watched a
lot of cartoons as a kid (come to think of it, I still do). The first time I ever saw "Red Hot Riding Hood" was at an animation festival in New York in the 80's.
There's one Avery cartoon I know of that
is banned, though, and that's "Uncle Tom's Cabana." For black stereotype caricatures, as you can probably guess from the title; you'll never see it in any re-release packages. Too bad, because it's a very funny cartoon.