I have no idea what show this is from but I just found it on an old VHS tape i found stored away in a box. Update 19/5/09 - This is a clip from the series "Swap Shop"
It is a song about a waiter who pursues a meatball over quite a distance. A diner sneezes, sending the meatball off his dish and on a journey. I just realised the tune is the same as 'On top of old smokey'.
If anyone remembers what show this is from please let me know in the comments. Thanks!
Enjoy!