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Version 2.0
This is my theory on Uncle Rico, the character from Napoleon Dynamite. For those who haven't seen the movie, it's an indie film from 2004 about a teenage boy named Napoleon, played by Jon Heder. In the movie, Napoleon lives with his grandmother. She goes on a trip to the dunes and breaks her coccyx while riding a four-wheeler. She has to stay in the hospital and Napoleon's Uncle Rico must come and stay with him and his brother Kip.

I think Rico must be a child molester...specifically a molester of Kip, Napoleon's older brother. The reason for my thinking is the scene when Kip and Rico are sitting on the couch watching Rico's video of himself throwing a football around. Rico then puts his hand on Kip's thigh, and the two share an uncomfortable look. I feel like there is something in the two's past involving "inappropriate touching".

Kip also seems to be living a repressed lifestyle as evidenced by the fact that he still lives with his grandmother although he is 32 years old and by the way he dresses. For most of the movie, he dresses like a little boy, wearing a polo shirt, shorts, knee-high socks and he has braces. Kip meets a woman online named LaFawnduh. When she finally comes to visit him, he seems very shy around her, as though he hadn't been with a woman before.It's clear that Kip acts however those around him want him to act. Grandma and Rico perhaps want Kip to remain a little boy and he does. LaFawnduh (being a somewhat stereotypical representation of an African-American woman) gives Kip a big "bling" necklace and soon after we see Kip dressed as a 'thug' complete with an oversize tracksuit and a doo-rag. Also he attempts to use some black slang.

However, I don't believe Rico's sexual deviance ends with Kip. Napoleon himself acts quite childish for his age and Rico tells a classmates' mother about how Napoleon still wets the bed and what a "tender boy" he is. Quite strange behavior for someone who is around 16 or 17 years old. However, bed wetting is a sign of sexual abuse, so...you can see where I'm going with this. But Rico doesn't just have a taste for boys, he likes the ladies as well. He has several awkward conversations about breast-enhancement pills with Napoleon's female classmates; as well as the wife of a local Tae Qwon Do instructor, even though she expresses her discomfort, he presses her to read the flier. He also sells a Tupperware-like product door to door and in nearly every instance he is selling to women and appears to be flirting with them. Maybe there is something extra going on behind the scenes to seal the deal?

But there are many instances where Rico says he wishes he could go back in time and do things over, even trying a time machine bought online. Perhaps he realizes his wrong-doing and wishes to repent. He reminisces often about his football playing days and how if they hadn't been cut short, he would have made state. Maybe his molesting of Kip had something to do with the end of his career.
One last thing, Uncle Rico lives inside a van. Specifically a 1975 Dodge Santana Campervan. Isn't a van the preferred vehicle for many creepy guys?

Or maybe I'm just reading too much into this...