This episode opens with the guys at the Clam comparing driver's licenses, in one of the funniest cold opens of the show's run. Peter got drunk before having his picture taken, so that when a cop pulls him over, they will look at his drunken picture and be all, "Oh, you're not drunk, this is how you always look." Cleveland's picture has a preposterous smile, because he had just gotten a new tube of toothpaste. Poor Joe - they were all out of "disabled," so his driver's license says "retarded."
And Quagmire's license reveals the surprising fact that he was born in 1948. His secret? Carrots. "Sometimes I grind them up into juice, or just eat them raw. Or insert them anally. Long as I get them into my body somehow."
Anyway, one of the casualties of the HDTV change-over is the local Fox news anchorwoman Rhonda Latimer, who turns out to be far less attractive in HD. Lois tries out for the position, and is hired as the new Fox reporter. (Turns out Lois majored in journalism in college, conveniently enough.)
Brian is predictably outraged by Lois taking the job, and by Fox News, and blah blah blah.
Another delight of this episode is the secondary story arc where Peter, Chris, and Meg decide to pitch their own animated show ("Handi-Quacks") to Fox. Meg proves to be terrible at creative development, always going for the obvious joke, and watching Chris and Peter storyboarding out their show while shooting down everything Meg says is a sublime parody of the real-world development process.
Unfortunately for Peter, when he pitches the idea to a Fox executive, the executive requests a change that Peter doesn't like. Then the executive offers to take the show as is, but Peter still says no. End of story. (???)
Anyway, Fox News sends Lois out to prove that Michael Moore is a homosexual. But when Lois deduces that Michael Moore is sleeping with Rush Limbaugh, Fox decides to scuttle the story. When Lois and Brian decide to pursue the story on their own, they discover the truth… both Rush Limbaugh and Michael Moore are actually Wonder Years actor Fred Savage in costume. (As are Tony Danza, Camryn Manheim, Malcolm-Jamal Warner, Kevin Nealon, John Forsythe, and Lars Ulrich.)

Worst moment: a tacky bit about Ellen DeGeneres having fish breath.

Best Moments
Meg: "Mom, do you ever feel… not so fresh? Down there?" Lois: "No. There must be something wrong with you."