Probably THE classic Christmas show of any TV show ever aired. It has great comedy, good sight gags, tender and real moments before the show jumped the shark.
This episode, plus the film "A Christmas Story" (with Ralphie wanting his rifle), "A Charlie Brown Christmas" and "A Christmas Carol" (original film with Simms) are all must sees to complete the Christmas season for me.
The Cunninghams trying to fix the broken Santa on the front lawn, and Chuck laughing at them just as Santa lets loose with a package he keeps moving back and forth are great.
The scene in Fonzie's apartment where Fonzie says he has a tree -- to which Mr. Cunningham looks at (probably thinking it's not as good as Charlie Brown's) and says, "That's a nice tree" is excellent. Great feeling and compassion.
Many other scenes are top notch, and who can forget Fonzie's reading of "The Night Before Christmas". MUST SEE TV.