The great thing about Charlie Chaplin was that the things you were supposed to laugh at in his films were things that you typically shouldn't laugh at in a real life situation. That's what made it so great. Nico could be amused by things without feeling odd or guilty about it because, hey, it was Chaplin. And also liked the silent aspect of it, how the only real sound you got was the music and the people in the audience enjoying themselves. It was a nice change from the films of today.
Eventually, of course, the hour started to get late and Nico's laughs started to come fewer and further between. He then started yawning every now and then, but he was trying to tough it out, at least until Lyle was ready to call it quits on the all night festival.