Funnyman Stephen Colbert is cashing in* on the holiday spirit by releasing a DVD and digital EP of his A Colbert Christmas: The Greatest Gift Of All (both released on November 25, 2008 via Comedy Central).

As much as I hate the DRM on iTunes, this EP is only available through iTunes. If you have an iPod and likes funny Christmas songs this might be worth your while.

Guests includes Toby Keith, Elvis Costello, John Legend, Feist, Willie Nelson, and Jon Stewart. The John Legend song about Nutmegs has very sexual innuendos that’s safe for the kids and fun for the adults. I was happy to see that W♥M favorites Elvis Costello made an appearance too!

I haven’t seen the DVD, but based on listening to the EP (which was the audio lifted from the DVD) and watching clips via Joost on my iPod, it looks pretty funny. Apparently Colbert is trapped in his cabin and famous musicians visits him to do sing songs and stuff.

Recently, Colbert declared war on Kanye West because his 808s & Heartbreaks is #1 while Colbert is at a respectable #16. So, I guess, “Operation Humble Kanye” will be on next Wednesday, December 5th at 5pm (eastern).

Since I actually block double-click, I couldn’t actually view the video on comedycentral.com, so instead here is a clip via hulu.com

If you live outside of the US, I believe you can actually watch the video with this direct link.

Anyway, I think Colbert is pretty funny. It’s cool to see him move from being just some report on the Daily Show with Jon Stewart (hey remember how he used to be on MTV?) to having his own show on Comedy Central…. to even writing his own “book”: I Am America (And So Can You!). I ended up getting the audio book because it’s actually read by Colbert and there are guest appearances as well as sound effects and soundtrack!

* Before you dismiss this Christmas cash-in and Colbert’s arrogance, this project is actually for a good cause, for the charity group Feeding America.