@Crystal_Fish_Caves
Oh, I'm sorry, the Fozz as orc thing was brilliant too and I didn't say that before. The mass battle scenes of hordes of Fozz Es are *chef kiss*.
What about maybe Big Bird as Legolas and Mr. Snuffleupagus as Gimli?
I was thinking the newscaster Muppet as Elrond, or maybe the vain pig whose name I can't remember? I'm scraping the bottom of the Muppet barrel, I know.
And then we've got Janice as Eowyn, whom I can't believe I forgot.
Since we're going Sesame Street for the Hobbits, what about Grover as Sam and Elmo as Frodo? Then we can shift Honeydew and Beaker to Boromir and Faramir. The concept of Faramir only ever saying "Mee" amuses me, but maybe it's a cheap shot on the Captain of Gondor.