John Cleese has often said that the only two sketches of his from series three that he thought were any good were 'The Cheese Shop' and 'Dennis Moore.'
The melody for the Dennis Moore song is taken from a song originally about Robin Hood ("Robin Hood, Robin Hood, Riding through the glen...").
In the Dennis Moore sketches, John Cleese's horse is called "Concord," just like his horse/squire in Monty Python and the Holy Grail (1975).
Michael Palin and Terry Jones wrote the 'What the stars foretell' sketch as a parody of a Graham Chapman and John Cleese style of writing where they use a string of words from a thesaurus. They initially conceived it as a bit of fun between them and were surprised when the sketch was included in the final shooting script.