Need help identifying this Bavarian restaurant!!

I believe you will find it has been dismantled just like all of the other "sets" on Monty Python's Flying Circus.

that's what I believe as well ;-))

This clip comes from an episode that was made in Germany for West German TV, so there's a chance that it actually was a real restaurant (with the windows, it doesn't look anything like the usual cheapo Monty Python sets, and its on film, not video transfer, which European TV typically uses when filming outside of a studio). But even if they did use an actual restaurant, I have no idea where.

But here's a similar, real life restaurant:

http://www.gasthof-fraundorfer.de/englisch/index_e.html