I honestly phased out whether or not mine had Kermit in it. Basically I watch it around Christmas every year, but often put the DVD in and start it playing and then grab some hot chocolate or whatever. After reading the posts in the thread and knowing I am going to the musical tomorrow, I popped in my DVD. When I saw Kermit in the corner on the case, i was very optimistic. Sure enough, there he was introducing the story and being harrassed by the Nightmare gang...
Every year I watch this movie and it never ceases to amaze that 30 years later, it still is magical