How bad is it? Scattershot comedy with unusual cast. Not terrible.
Should you see it? Yes - for the cast.
This appears to have been two film ideas that got forced together: a "Police Academy" type of comedy and a Murray Langston "Unknown Comic" film about trying to make it as a stand-up comic. [Full disclosure: I met Murray. He's a nice guy.] The cast is once in a lifetime: Pat Paulsen, Jack Riley, Jaye P. Morgan, Linda Blair, Billy Barty, Pat Morita, Kitten Natividad, Andrew Dice Clay and Sydney Lassick (if you don't recognize that last name, you'd recognize the face, at least from "One Flew Over the Cuckoo's Nest"). It's an endless string of jokes in extremely poor taste, like a lesbian bar where even the pool table doesn't have balls, to grade school puns like "You can have your Kate and Edith too." Maybe one joke in twenty works, but it keeps moving and if the farting sergeant doesn't bother you, the rape victim that enjoyed the assault should and the climactic scene in blackface undoubtedly will. The director, Jackie Kong, made only 5 films, but they're all interesting; I considered reviewing "Blood Diner" and decided it was too good for the blog.