Trouble is that even if he/she wins the case it still needs to be collected and that's a whole other story.
Another potential issue is jurisdiction. GAW's TOS may require to resolve all disputes in CT for example (I can't check now since they've hidden their TOS - another classy move).
If they're suing in small claims it has to be done in the defendant's location, I think. See http://www.jud.ct.gov/faq/smallclaims.html
No. The Connecticut state rules that you linked to actually gives instructions for a CT state resident filing against an out of state business. As usual you do not know what you are talking about even when you link to the document which explains it. As was mentioned earlier, the real issue is collecting once a judgement has been rendered against an entity in another state.
I'd sell my claim to a collection agency just to be a pain in Josh's ass. The 30%+ fee would be well worth the show.