Someone, that fellow over there, who eats no hair in his soup, shakes his head so long, that a hair is in it.

That is, "jemand, der darüber dem kein haar in der suppe ißt . . . (not "ist"). (I think I have that almost right).

It's the old ist/ißt game, and, as you can see, isn't at all funny when translated. It also isn't very funny when it isn't translated.