There's a special going on at Sesame Street. First, Gladys Knight and the Pips sing the theme song, then Phil Donahue interviews the residents; Alastaire Cookie tells us the tale of "The 39 Stairs" with Grover. Bob sings the "Who Are the People in Your Neighborhood" song with Ralph Nader, Barbara Walters and Martina Navratilova; Hoots teaches Ernie about how if he wants to play a saxophone, he must put down his duckie; Kermit tries to get Oscar interested in public television; a classic Grover waiter sketch; James Taylor sings an interesting song and finally, some culture: an opera.