That was the funniest episode of Angel I've ever seen. In fact, it was the funniest episode of any TV show I've seen in a long time. Brief synopsis: Angel is magically turned into a muppet. A broody, cranky, two-foot-tall muppet.
I wish I'd had the foresight to hook up the digital videocamera to tape it (as the VCR was occupied taping the third and fourth episodes of the Medici series on PBS); I missed some of the lines because I was laughing too hard.