This is definitely one of my favorite episodes from Seinfeld. The central conflict is around who deserves a parking space: George or Mike. This is a great example of how the Seinfeld writers were able to take a real-world sceanario and blow it up to epic proportions. The laughter becomes side-splitting as bystanders join in to argue who deserves the spot.
This episode is also highlighted by an incredible story that Elaine makes up on the spot to distract Jerry from thinking about the damage that George did to his car. All in all, one of the best Seinfeld episodes.