In the mid 1970's there was an album with a comedy bit on it that
started out "A man walks into a bar with a beautiful woman on his arm"
something like that and ends with "a man walks ..... with a beautiful
arm around his woman"  I thought it might be firesign theater but my
friend said it wasn't.  He thought it may have been a National Lampoon
bit.  What was the group that did it, what album was it on and what
was the name of the cut?

Hello.

According to a newsgroup message, the cut was "Stand Up" by Brian
Doyle-Murray. It was on an album called "National Lampoon Gold
Turkey."

"A man walks into a nightclub with a beautiful girl on his arm...
...
The man walks into the nightclub with a beautiful arm on his girl...
....
It is NOT a Firesign Theatre routine.  It was written and performed by
Brian Doyle-Murray (former cast member on Saturday Night Live, and
Bill
Murray's older brother) on the National Lampoon Radio Hour back in the
early-to-mid 1970s.  This particular routine made it to album form on
the
National Lampoon "Gold Turkey" album."
source: newsgroup message, hosted by Google Groups:
http://groups.google.com/groups?hl=en&lr=&ie=UTF-8&selm=2scvro%24j4e%40clarknet.clark.net

Also see another newsgroup message about the routine, also hosted by
Google Groups:
http://groups.google.com/groups?hl=en&lr=&ie=UTF-8&selm=2dvsug%24if4%40panix.com

Brian Doyle-Murray's "Stand Up" is Track #10 on the CD of Gold Turkey:
National Lampoon Radio Hour/Greatest Hits The disc is available from
Amazon:
http://www.amazon.com/exec/obidos/ASIN/B000002548/

search strategy:
google groups: "beautiful arm on"

I hope this helps.