The One Where Paul's The Man - S6-E22
Other mistake: There are two mistakes in the scene where Phoebe spots Joey's picture in the laundromat. For one thing, when Phoebe says "Oh, here it is", she is looking in the opposite direction of the picture. Also, when she says this, her mouth doesn't move at all. (00:16:10)
Answer: The statements that she's contradicting (that it is common, it happens to every guy, and it's not a big deal), are the things that a woman commonly says to a man who is suffering from erectile difficulty, typically to assuage his bruised ego. However, most men do not believe that these statements are true, as evidenced by Chandler's outburst. He's so caught up in the proof that women are lying about it that he gives himself away.
Rooster of Doom