From what I've read, Sheik approached Warrior at an autograph session to say hello. Warrior refused to shake his hand and called security to get Sheik away from him. The video covers the aftermath - Sheik yelling at Warrior, the promoter, security, and then smacking the promoter.
Damn, Shiek really bitch-slapped the promoter! Warri.....F' that, Jim Hellwig is a piece of garbage! He craps on everything about the business. God, no wonder WWE buried his ass on his own DVD. Love it, BTW
Let me preface this by saying that yes, Warrior's a total nutcase.
HOWEVER, in this instance I don't blame him. Sheik's been badmouthing Warrior in shoots (and in private) for years, saying he was on drugs, etcetera. Then, once they're in the same room, Sheik went up to him all cordial. So in a way, I don't blame Warrior for saying "no, you're not going to go around badmouthing me to everyone who asks (and some who don't) and then get a handshake from me" (which is supposedly the gist of what he said).
That being said, I don't doubt that Sheik had good intentions. He's got diarrhea of the mouth, and even when he's badmouthing someone and working into hysterics, more often than not it's not with quite as much malicious intent as it may come across. Basically, Sheik's whacked in the head and has been for many years, and will say stuff if he thinks it'll get him publicity and/or admiration.
As for the video...I watched it last night, and I can't say that I found it amusing. It came across to me more as sad, really. It's all well and good for us to find amusement in rants against Brian Blair and "Kramer," but this and stuff like him being hospitalized for alcohol poisoning isn't necessarily a laughing matter.
You have a point about quality over quality. If WCW was still in buisness I would guess that JJ and Booker would be up to 20 times each. But the last long WWF title reign belonged to Diesel and it is considered to be one of the worst reigns ever.