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Her appearance was sitting there and dancing/moving to Amy Poehler's singing. I'm not sure how her being on it was actually hilarious, as much as the skit itself was funny.
Yeah, I know. The SNL cast made it funny, not her, but I thought the content of the song was funnier with her there than if would've been without her. I also laughed when Poehler said "all the mavericks in the house, put your hands up" and they cut to Palin raising the roof. The dancing moose was the best part, though.
I don't like Palin as a candidate for V.P. but she was a good sport to show up, and it was probably a shrewd move by the McCain campaign in an attempt to reverse her flagging favorability ratings. I tend to think this won't be a game changer since this probably has zero chance of improving the state of the economy, and it gets followed up by a Colin Powell endorsement the next morning.