In the Oil Ocean episode, the zone starts out with a parody of the old MGM cartoon opening titles (for a cartoon called Oil Ocean Follies). And then you see the hilarious pictures of Sonic and Tails that ensue.
The story of "Failure Cresh", a baby with a Ring monitor for a head, interrupting the gameplay and just being ridiculous.
Game Breaker: Knuckles is broken beyond belief, able to clear entire stages by just leaping into orbit and summoning the bazooka-toting police officer from Streets of Rage to One-Hit Kill bosses. Fortunately, there's a cheat code to Nerf him and make the game more fair.
Hilarious in Hindsight: The joke about Knuckles being a Game Breaker—because he can jump too high and bypass entire levels—is even funnier in the wake of Sonic Boom, where a glitch allowed Knuckles to Double Jump indefinitely and Sequence Break the game five ways past Sunday. The cartoon even shows Knuckles jumping into space, just like in this LP. No bazooka, though, but you can't have everything.
Ho Yay: Sonic & Tails, so much so that they married in the epilogue.
One-Scene Wonder: Failure Cresh made a big impression on the players, considering that he only shows up for five minutes in No Blood For Oil Zone (and a brief mention in the epilogue).