In his opening monologue Kermit mentions that they're going to make guest star Paul Williams an honorary Muppet because of his short stature.
Fozzie is rehearsing his new act when Scooter comes to cheer him up. He tries to get on stage with Fozzie by suggesting they do the telephone pole bit.
Paul sings "An Old Fashioned Love Song" while being joined by two Muppet versions of himself. There's rain drizzling down the window like the song mentions. He's joined by a jug band and the folk soung trio that come out of the radio on the stage.
Muppet Labs debuts introducing us to Dr. Bunsen Honeydew. He demonstrates an all purpose tenderizer. He tenderizes a plate so it doesn't break and a ladle. At the end he realizes the table has been tenderized too.
Rowlf recites a poem titled "Silence." He's interrupted by George sweeping, a bird crying, Miss Piggy eating an apple, Janice and Zoot whispering, Wanda singing, Scooter listening to the radio and Animal drumming. Kermit asks him to be quiet.
Paul mentions how he's the tallest person on "The Muppet Show." He's happy that no one will make fun of his size. He's fine until Sweetums and a couple of other tall monsters come out and tower over him. Then he cries.
Fozzie works on the telephone pole bit. Hilda mentions that he doesn't look like a telephone pole and that no one will be convinced. A telephone lineman walks by placing a telephone wire on Fozzie's nose.
The ballroom brings a noisy unemployed librarian and Animal tripping his partner.
Kermit joins in a frog chorus while a perky blonde girl sings "I'm in Love with a Big Blue Frog." At the end of the song we learn that she used to love a bumblebee.
Paul and Kermit chat. They talk about famous short people. Paul goes skyward when Kermit mentions lifts.
A woodpecker pecks Fozzie while he practices being a telephone pole made of solid wood.
Paul is a travel agent. A big blue monster want to go to Pittsburgh. Paul gives him all the options but they're too expensive for the monster. An anvil flattens the monster so that he can be mailed to Pittsburgh.
Wayne saws Wanda in half until he stops when she screams in pain.
Muppet Newsflash tells a story of a man who picked up the phone but no one was there.
Kermit wishes Scooter luck doing the telephone pole bit. Fozzie then says he won't do it because he now knows what the bit is. They do it anyway. Fozzie is dressed as a telephone. When asked his name he replies with a Polish name. Hence he is the telephone Pole.
Rowlf plays soulfully while Paul sings "You do Something to Me." The Electric Mayhem and other Muppets join in.
Paul mentions that he had a fun time until Sweetums and another tall monster dwarf him.