Is there a G4 module for the Peg I? If so, where does the cpu speed
get set? is it on the add-on card? And if it is available, where can
we get a G4 module/price?

i don;t think it can be done.....but mabey i am wrong

Most Peg1 mainboards can't accept a G4 CPU. This is a known issue of the Artica chipset. The CPU speed is set on the CPU card itself. G4 modules were never officially sold for Peg1, at least not in high quantities, AFAIK. If you want a G4, better trade-in your Peg1 for a Peg2/G4. Pegasos2 CPU modules can't be used (neither G3 or G4) in Peg1 boards.

Actually, the Pegasos1 G4 was officially sold, but only in a
combination of motherboard and CPU module, because they had to
manually test which CPU's that worked with which motherboards. I
remember BBRV said that quite few was sold, only about 25 or so.

Here you can get "in contact" with one of them (as a server):
http://www.pegasos.org