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all I remember was Statler and Waldorf had the following exchange

it was very strange
it was very weird
its peculiar
it was kind of amusing
yes it was rather funny
it was incredibly funny
i loved it!
There hilarious!
Wonderful encore encore!

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Don't know which episode, but that exchange is hilarious!!

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I know this has been forever ago, but in case this is a question you never got answered, it appears to be the Spike Milligan episode, Season 3, Episode 17.
http://www.allreadable.com/8d35HmR7

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