Yes, this video was directed by Eric Idle of Monty Python fame. Idle appears in the video, as does Neil Innes. (Innes plays several roles, including the woman pushing the carriage at the start of the video.) This video was shot on the grounds of Harrison’s estate, Friar Park (which was also known as, you guessed it, Crackerbox Palace). The video made its debut on the November 20th, 1976 episode of Saturday Night Live. SNL, that week, was hosted by Paul Simon and featured both Simon and Harrison as the musical guests.
The name Crackerbox Palace was originally used as the name for the Los Angeles estate that was owned by Lord Buckley, a comedian who was admired by Harrison and whom it was felt that Harrison physically resembled. Harrison wrote the song after meeting Lord Buckley’s former manager, George Grief. Harrison also payed homage to Blazing Saddles in the song, repeating Madeline Khan’s famous line of “It’s twoo, it’s twoo” during the instrumental breaks.
This whimsical video reflects Harrison’s sense of humor (not to mention Idle’s). Harrison, with his reputation for being the spiritual Beatle, never seems to get enough attention for his sense of humor.