Ta-da! This is the silly place... ... which is a place that really lives up to its name. Know any good jokes? Step up to the stage and make the crowd laugh. Check your funny rating when the time is up.
The room is divided into three raised platforms. The first platform is just a clump of dirt raised above the ground with a door that leads to the third platform. The second platform has a jester's chair where penguins can sit and the third has a boat where penguins can tell many jokes by pressing the [J] key and then once the timer runs out - they are rated on the number of jokes.
If you click in between the space in the air, you will go back to door you started walking. This is to prevent glitches.