The first episode of Frasier to be written by Joe Keenan, the writer who would go on to pen many more a classic, is possibly the funniest Frasier ever.
The audience is aware that Tom Duran is gay but Martin, Niles, Daphne and Martin are clueless whilst Duran thinks Frasier and his dad are gay! And thus some of the show's greatest lines are in this episode such as Martin's declaration that he hangs out at Duke's because there's a "..great crowd, lot of young cops" to which Duran is visibly aroused.
As gradually the farce unfoulds Frasier is left with Tom on his own and has to face his advances to which more superb Frasier lines are born. Classic.