Peggy becomes jealous of all the compliments Hank gets on his lawn. She tries to put her own imprint on the front yard by starting a garden, and to make it stand out, she buys a large, horrible-looking "Garden Gnome" that drives Hank crazy.

Notes:

Kathy Najimy and Cynthia Mann previously worked together on Veronica's Closet.
Tagline: "Hank likes the gnome." (Bill)

the episode is pretty funny

That is one of my favorite episodes. :D

Is that a Winklebottom or a Figgleforth?

The first gnome was Winklebottom.

^^Correct.