That's pretty cruel of someone to steal that puppet from him, I couldn't see what anyone could gain out of that.
Anyway, funny episode, I was initially surprised at Carol's return, and everyone else from the office as well. But I'm glad that they're keeping this relationship story going... while Tim and Eric might be 'hit or miss' for some audiences, they sure do know how to get good characters out of their writings, even if it is just two people playing everyone.
The Shyps thing was hilarious, and the Space Course: Horse to Horse thing was funny as well.
A+ for a solid season so far.