This episode is, in a word, hilarious. The comments are snappy, everyone's in character, the situation itself is pretty funny. Will and Grace are embroiled in their heating vent drama, and Ooey/Judy's story -- while not especially original -- is exactly the kind of soap opera that people get involved in every day.
Karen's "green eggs and I'm hammered" line is probably the least humorous utterance in the entire episode. She and Jack are at the their best here, playing off each other well in almost every scene. Jack's first play is terrible but typical in an unpredictible way, if that makes sense at all. The audition scene is hilarious, and the final play is even funnier. It manages to bring both storylines together -- Jack manages to capture Will and Grace ("Will, we've been here five minutes already") without actually capturing them at all. The play is no work at art, and certainly on its own wouldn't be that entertaining, but in combination with the rest of the episode, it's perfect. And casting Karen as heaven's gatekeeper and with Jack backstage mouthing every line don't hurt it either. Although I don't think Jack deserved all the repentance he got from Will and Grace, though. Will did make a valid point -- because next week, Jack really wasn't still a playwright, and it's not fair that Will had to lose a nice suit for not being overly enthusiastic about the tiki play.
The last moment -- Ooey/Judy and her husband standing on a chair and listening to Will and Grace through the heating vent and misinterpreting Will and Grace's life always makes me wonder how much Will and Grace were misinterpreting about Ooey/Judy and her husband's life. But it is the perfect clincher to a wonderful episode.
It's interesting to note, in this episode especially, the differences between Season One and the later seasons. Jack and Karen aren't as extreme, and they seem almost more real -- or, as real as characters like Jack and Karen could ever be. It's interesting to see Jack in an art other than acting or dancing or singing -- which he sticks to almost exclusively in the later seasons, excepting his brief departure into retail-land. Also, Rosario is still an abstract character here -- comparable to Stan -- and Karen's random Spanish words to make their conversations more "comprehensible" are uniquely a part of Season One. Also, Karen is more willing to play the voice of some reason to Jack's writing escapades. She's shallow, drunk, and still Karen, but she's a lot less airheaded than she gets to be. It's interesting to watch and consider where these characters are going.