Mr. Bill was an old SNL joke in the 70s. Something bad always happens to him because of Sluggo and the narrator, mostly a disembodied hand, doesn't seem to believe Sluggo is going to do anything bad (or he just really doesn't care). It's supposed to look like a kids show.
I had a Christmas tape of it for some reason, and another 70s SNL skit character Father Guido Sarducci makes a guest appearance.
"You're made of spare parts, aren't ya, bud?"