I've played on a mud that I think sets the standard for combining serious gameplay with light-hearted fun. Overdrive is one of the older LPmuds out there and it sort of made its name by offering a touch of absurdity to go with its complex and descriptive combat.
overdrive.concentric.net 5195
Right now, the player base is a little low (usually 20 or so at any given moment), but my experience is that the more people show up, the more fun it can get (as if that wasn't obvious)
There is a new listing on here, although the website is a little dated (we're updating it soon) It might not be exactly what you're looking for, but I thought it sounded close enough to mention.
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