I would be very interested if anybody could dig up that video. I just did a search and couldn't find it.
I'm thinking the story might be apocryphal, one of those urban myths, because if it actually happened, the video would probably go viral in a big way.
That's not to say Chicken McNuggets won't be tasty if you cut them up, insert toothpicks, and put them on a tray at a cocktail party. McDonalds spends millions of dollars a year ensuring that their food is tasty. After all, cheese doodles and Doritos are "tasty" as well. However, I doubt that any serious "foodie" would be fooled by a tray of cut-up chicken McNuggets. But I could be wrong. Let's find that video!
I recall that video being posted on FR.