That's an extremely young Jim Henson to the right--with an early Kermit puppet.
A friend of mine owns the entire Muppet Show library on VHS tape. A little over a year ago, he lent me some of the tapes, and, now, my three-year-old daughter is a huge Muppets fan. And with last year's release of the Muppet Show's first season on DVD, I would imagine a new generation of young fans is in the making.
To celebrate the 50th anniversary of The Muppets, the post office has issued a page of commemorative stamps, and The National Museum of American History in Washington D.C., is currently showcasing a Henson exhibit.