When Peter is threatening to fire Lois, he asks her if the name Lacey Chabert means anything to her. Lacey Chabert was the original actress who played Meg in the series, the implication being if the show could fire her, they could fire Alex Borstein, who plays Lois. In real life however, Lacey Chabert chose to leave Family Guy and was not fired.
The downer German bedtime story about thumbs was taken straight from Der Struwwelpeter, an 1845 book of horrific accounts of the dire fates of disobedient children. Even the illustration style matches.
The Parents Television Council, a frequent critic of "Family Guy", filed an indecency complaint against Fox for content in this episode - specifically, a scene where a stripper gives a lap dance to main protagonist Peter Griffin's father-in-law, Carter Peweterschmidt.
When Carter has his heart attack in the strip club he says he's having a "Heart attack you oughta know by now" that is a lyric in the Billy Joel song "Movin' Out (Anthony's Song)"
An extended deleted scene featured Peter recreating a routine performed by Jerry Lewis in 'The Errand Boy.' It would have depicted Peter pantomiming a business meeting set to Count Basie music. It was removed for time, however, and replaced with Peter's line "you're in love with Peggy. What a mess."