Washington reveals his middle name is "Percy."
Freddie makes a joke about "hating short people." This was a reference to then popular song "Short People," by Randy Newman. It reached #2 in the Billboard charts and was prevented from reaching #1 by the success of the soundtrack to Saturday Night Fever (1977), which also lead to super stardom for John Travolta who would prematurely leave the series during the fourth season.
When Vinnie is waiting on the elevator to wheel the "fake" patient down to surgery he takes the patients hat and sets it on his crotch and tells him "I'm glad I was able to cure your 'priapism'. Your wife said you were all bent up because of it". The inside joke is the "priapism" is the severe bending of a man's erect organ.