Yeah thats pretty much it. The episode is a riff on the Eurovision song contest which Ireland had just won a number of years in succession. The general feeling within Ireland was that we didnt really want to win it again, too much hassle.
“Ah, gow an, gow an!!!”
Father Ted is right up there with the best sit-coms ever created, and picking a fave moment is like picking your fave position after mastering the Kama Sutra.
But… at this point in time, I’m gonna go with… Chirpy Burpy Cheap Sheep
“Fuckin’ 'ell!”***
Also one of my favorites.
The first episode I ever saw was the one about the sheep-contest, and I almost fell off my chair laughing.
And the charades scene from the epidsode where Father Jack dies: “No, no, Jaws II – it’s a completely different shark!”
Ardal O’Hanlon was in the Britcom “My Hero.” Far, far, far different than FT: My Hero (TV Series 2000–2007) - IMDb
You probably saw the same Comedy Central standup special I did. Yep, Ardal O’Hanlon was killer.
My favorite bits: “…and then you’ve got a sheep full of dead ducks, and that’s no good to anyone.”
Plus, how free love “would never work in Ireland. We’d be suspicious if someone came up offering free love. 'Hah? Whad’ya want, my land? Go ‘way!’ That’s such a ridiculous thing to do to another person, anyway. What about baking 'em a nice cake or something… or just leaving 'em alone for a while?”
You misspelt “shitter”.
I’ve got to go back and watch my DVDs again. Actually, I think I lent one set to my parents, who now deny having them. I think we all know what happened there.
I do love the film protest: “Booo.” “Down with this sort of thing.”
But the best scene ever is Father Ted tapping the dent out of the (IIRC fraudulently won) car.
“Careful now.” 
I’d have to say Father Dougal would be one of my top TV characters of all time. Especially when he goes on about religion in general.
“That’s nearly as mad as that thing you told me about the loaves and fishes!”
Father Dougal: Let’s see, I’ll have the Hindu Curry, Steak and Chips, and a glass of Coke thanks.
Policeman: Do you know where you are? You’re in a police station.
Father Dougal: Oh right. Well, in that case, I’ll just have the Satay Chicken.
Only discovered the show a few years ago. The finale made me tear up, both because I knew no more were made and that there’d be no reunion (Dermot Morgan being deceased).
Oh, man, I did not know that…he was awful young, too. 
I think he died shortly after the party to celebrate the end of the series. Very bizarre.
Yeah, he was almost 46
I watched it from first episode on Channel 4, and thus the first episode will always be the best to me was it “tunnel of goats?”
Classic moments would be Ted explaining to Dougal the difference between reality and dreams, with the huge picture of a head, with ‘dreams’ inside the head and ‘reality’ outside.
Jack escaping and them having to shoot him with a tranquiliser dart…
Graeme Norton playing a young priest with a bunch of kids doing riverdance in a caravan…
The dreamt video from the Eurovision episode… “We’re going to have to lose that saxophone solo”.
The priests getting lost in the lingerie department in a shop…
How about when they enter the wrong caravan by mistake, and the guy who actually lives there walks out buck naked from the shower? Then the same guy is naked holding onto the hood of their car while they’re driving away.
The day after the last episode finished filming, in fact.
“I don’t BELIEVE it!”
A personal favourite of mine was this little exchange (from “Entertaining Father Stone”):
Father Dougal: Did you ever see that film, Ted, where your man has his head transplanted onto a fly, and the fly’s head was transplanted onto the man?
Father Ted: Oh, yes… what was it called…?
Father Dougal: Out Of Africa, I think. Anyway, your man has the head of the fly and he’s chasing his wife all over the place and she’s hiding the jam and everything so he won’t get stuck in it…
Father Ted: I’ll have to stop you there, Dougal.
Father Dougal: Yes, Ted?
Father Ted: No reason. I just have to stop you.
From Speed 2:
Father Ted: I know what’s going on, Pat Mustard. There are some very hairy babies on Craggy Island, and I think you are the hairy baby-maker.
Pat Mustard: Oh, yeah? Well, I think that you would need proof if you were going to make that sort of an accusation. And I’m a very careful man, Father. A very careful man!
Father Ted: Except when it comes to taking precautions in the bedroom.
Pat Mustard: Ah, w-… you certainly wouldn’t be advising the use of artificial contraception now, Father, would you?
Father Ted: Yes, I… well… if you’re going to be… of course you will… JUST FECK OFF!
There was a documentary on the BBC a few weeks ago about a true-life priest in Ireland (Father Michael Cleary) who hosted his own TV show. Clips of this show included various priests singing pop songs and playing musical instruments. It was just like watching an episode of father Ted.
Later on it turned out that the priest had had two children. Their mother was the priest’s “house-keeper”. Sometimes truth is stranger than fiction.