Frasier holds a dress as your hero party, game included, but no one knows who he is, Daphne dresses as Elton John, Marty as Joe DiMaggio, and Niles as his father.
Frasier begins to put down everybody costume epically when Roz changes into her costume which is Wonder Woman.
Frasier later feels bad when he finds out that each person they dressed as is there hero, especially Niles who dressed up as Martin.
Niles crosses the line when after having too many beers thinks he is retelling Martin's most embarrassing moment which only offends Martin and he leaves, leaving Niles feeling ashamed.
I loved Martin's one line when seeing Niles and Daphne kissing "I don't want to see myself making out with Elton John", was priceless.