I saw that too!! I remember thinking what a great idea and then being disappointed that Lambchop didn't get to meet more characters besides the Bird. Seems like they didn't do very much with the idea.
Still, her terrified reaction when she first saw Big Bird was hilarious. You know it well if you know that character--that open-mouthed horror thing she always did, sputtering like "Ah!---Ah!...." Can't blame her. If you'd never met an 8-foot canary before, seeing one walk down a Manhattan street would be a bit of a shock.
hunterseamster: So it was season 27? I seemed to remember it airing in '97 or thereabouts---your numbering would place it in '96, then? Guess I was off by a year.