Truthfully, I didn't see the whole episode. I only saw a short tidbit, but it was enough for me to rate this episode a 10.
Really, I just find it entertaining whenever any Muppet character is on a talk show. So of course, I had to watch Elmo. I was thoroughly amused that both Elmo and Francesca the dog had ponchos on as well. But hilarity ensued when Francesca got a bit wiggly and Martha put her down. Rather than run offstage, Francesca had to check out the guy sitting on the floor behind the counter…Kevin Clash, a.k.a. "Elmo."
Kevin covered very well for Francesca's violations of his personal space. When Elmo let out a yelp, flailed a bit and then said, "Excuse you Francesca," I burst out into laughter. Equally hilarious was when Elmo contorted his body to look into the overhead camera and exclaimed, "Hey, there's Elmo!" or something of the sort.
I honestly can't recall what Martha was making with Elmo, but the puppet-dog interactions were much more entertaining than their project.