Many adjectives can be used to describe the American misadventure in Iraq, but "funny" has never really been one of them -- military occupation and counter-insurgency don't lend themselves to humor. There are always exceptional moments, however, like the one described by an anonymous Marine in this unclassified September 14th letter:
"[My] Most Surreal Moment [in Iraq] - Watching Marines arrive at my detention facility and unload a truck load of flex-cuffed midgets. 26 to be exact. I had put the word out earlier in the day to the Marines in Fallujah that we were looking for Bad Guy X, who was described as a midget. Little did I know that Fallujah was home to a small community of midgets, who banded together for support since they were considered as social outcasts. The Marines were anxious to get back to the midget colony to bring in the rest of the midget suspects, but I called off the search, figuring Bad Guy X was long gone on his short legs after seeing his companions rounded up by the giant infidels."
The letter deserves to be read in full -- it's a great primary source, filled with telling details ("Favorite Iraqi TV Show - Oprah. I have no idea. They all have satellite TV") and laced with dry wit. One hopes that the author makes it home safely.
[Update, 7 October 2011: Regrettably, the above-mentioned letter is no longer available online.]