yes, it was part of the Jim Henson character and the dog Jim played was Bugsy Them. Rowlf also appeared and narrated it. it was probably one of the funniest specials the Muppets ever did!!!! Incidentally, the hero was a character named Ace Yu (played by Kevin Clash). Basically Ace inherits a barr&Grill form his deceased uncle harry but is forced to pay protection money to Bugsy Them ("bugsy was such a major gangster in those days, they'f print the same newspaper everyday and you'd just fill in the crimes") Ace refuses to pay and his girlfriend, Coleen gets kidnappped, er---dognapped. but of course it all works out in the end. Great special though. Bugsy has this great line "Senseless violence got me where I am today, and don't yo forget it!" What's amazing is that at the time, senseless vilence is what got Jim here he was, I alwys thought it a great line for him. We won't forget it, Jim!
--Matt
PS--It also won and Emmy for Best Production in a Musical/Variety Special or soemthign like that.