Jeff Dunham: Spark of Insanity is ventriloquist Jeff Dunham's second Comedy Central special, which premiered on September 17, 2007. It features the puppets of Walter, Peanut, and José Jalapeño on a Stick as well as two new characters: Achmed the Dead Terrorist, and a new version of Melvin the Superhero. (The old Melvin appeared in an episode of Comedy Central Presents.)
- Walter - A grumpy old Vietnam war veteran with an attitude. He doesn't like his wife (who remains unnamed) and likes pointing out Dunham's faults.
- Achmed the Dead Terrorist - A wisecracking terrorist who isn't very good at his job. He is scared of Walter, partially because he finds Walter's flatulence to be more potent than mustard gas. Jeff says about Achmed, "I don't think he accomplished anything he set out to do, but I do know he managed to blow himself up." Achmed says he was killed when he set his bomb to go off in 30 minutes, but it went off in 4 seconds. He also constantly remarks towards the audience "Silence! I kill you!".
- Melvin The Superhero - A superhero with limited powers and a gigantic nose. His "abilities" include flight and X-ray vision (which doesn't work on silicone) His biggest enemy is Pinocchio. His weaknesses include cupcakes and porn, though not at the same time, claiming he, "needs a free hand!". When asked by Dunham how far he can fly, Melvin responds, "How far can you throw me?"
- Peanut - A purple woozle resembling a small caricature of an ape. Wears one red shoe on his left foot. He is the joker of the whole group. Whenever José is around him, Peanut's jokes are mainly cutting him down.
- José Jalapeño on a Stick - A giant sombrero wearing jalapeño pepper on a stick (or "steek" as he says it with a stressed Latin accent). Peanut is mean to José, frequently mocking José's being on a stick, and his accent.
The special was released on DVD and was released on Blu-ray Disc later.
- The Making of Melvin-The video shows the making of Melvin the Superhero.
- What Would You Put on a Stick?-A cameraman asks people what they would put on a stick.
- Walter's Political Announcement-Walter announces he's running for president and states the things he will do.
- This is the only special to feature Melvin the Superhero.
- According to Peanut, this DVD was once going to be called Great Moments with Jeff Dunham.
Achmed: If I'm dead, that means I get my 72 virgins.
He looks at the audience.
Achmed: Are you my virgins? I hope not.
Jeff Dunham: Why?
Achmed: There's a bunch of ugly ass guys out there. If this is Paradise, I've been screwed!
Jeff Dunham: Well did they say it would only be female virgins?
Achmed: Holy crap!