http://www.cardgamedb.com/index.php/lotr/lord-of-the-rings-card-spoiler/_/dwarrowdelf/foundations-of-stone/lost-and-alone-fos

Can a player choose smeagol and see where he is in the deck due to his two-sided nature?

I do not know the official stance on this, but in previous theorizing, I decided I would house-rule it and proxy Sméagol with a regular player card so that I wouldn't be able to track it in my deck.

I would expect an official ruling to say you can’t choose him. Just because double sided encounter cards use this logic. Rules for double sided locations in the Grey Havens and following cycle say something like these locations are double sided and “therefore can never be shuffled into the encounter deck.” So I would suppose the prevailing logic is that being double sided precludes a card from being able to be shuffled into a deck.

Would also apply to having Sméagol in Escape from Mount Gram. Guess he has to be your starting hero if you use him?