Yes, "Gay the Musical" was my favorite episode. That's the one I play for people to get them hooked.
Craig: although it's not necessary to watch them in sequence, there are ongoing plot lines, running gags, new characters and references to past episodes that might make it confusing if you don't. For example, the introduction of Noel Fielding's character has a brilliant lead-up. Unfortunately, YouTube does not appear to have every episode available, including that one.