I suppose I should mentioned I just discovered this show. Just finished first season and am moving onwards (the entire show is on YouTube legally). I haven't gotten to this episode, but saw the clip and thought it was a perfect bite-sized bit of the show. I love this series, though. Probably one of the best comedy shows I think I've ever seen next to Arrested Development.
The show spends most of the first three seasons figuring out what it wants to be, and then seasons four and five are sheer brilliance. So, suffice to say, it gets even better.