E-I-E-I-(Annoyed Grunt) - S11-E5
Revealing mistake: After Lisa says "For a product that's evil and deadly" while standing in front of the tomacco stand, there's a duplicate Lisa behind her that stands still while she moves, giving Lisa the appearance of having two heads. It looks like the animators made a mistake while trying to animate Lisa.
Answer: Willy referred to an encounter he believed he had with actual aliens, while Wiggum thought he was referring to the arcade game.