The song that Pat and and Kitty dance to is "Saturday Night" by Whigfield, first recorded in 1992.
When the Captain is talking to Humphrey's head, Humphrey calls himself 'Graham Cheese'. Cheese was the family name of John Cleese, one of the writers of Monty Python; Graham (Chapman) is the name of his writing partner in Python; and one of Chapman's iconic characters is a Colonel who interrupts sketches with "This is all getting very silly". Three Monty Python references at once.
The Captain, like the character of The Colonel in "Monty Python's Flying Circus," says Humphrey's improv is too silly.