What is That Crazy Clown Video in This Movie

What is the name of the movie that Jack Lemmon's character puts on the television for his grandaughter to watch while he talks to Daryl Hannah's character. It's a clown dancing around, and it's a really quick clip that they show.
I have been looking for the name of this movie for a very long time. When I was young in the 80's, the kid's in my daycare class were forced to watch the exact same video. It used to scare me so much!!
I believe this video about the clown has alot to do with my fear of clowns. I think the clown's name was Punchinello and there is a part in the video where the clown and his donkey dance around.
If anyone remembers this, please let me know. Since I saw "Grumpy Old Men" on cable one day, I have been searching for it to no avail. Any help would be greatly appreciated!!

Thanks