My almost 2 year old is sleeping but I want to ask him tomorrow to see what he says. I think it may be easy for the kids that watch Elmo's World consistently to figure out it is Elmo because in Elmo's World, Dorothy (the fish) is always "imagining" Elmo is something else. Therefore the kids are used to seeing Elmo "transformed". Hopefully my theory proves to be true when my lo sees the pic tomorrow.
What a neat job you have!