Not exactly. The 30 Rock episode "Klaus and Greta," which won the award for Outstanding Individual Episode (in a series without a regular LGBT character), did feature James Franco and his Japanese body pillow lover. But it was the inclusion of Liz Lemon's cousin, Randy, that caught the attention of GLAAD.
In the episode, Randy comes to live with Liz in NYC, after she accidentally outed him to his family. While in NYC, Randy confides in Liz that it was hard to grow up gay in small town Pennsylvania, where the local TV station edited Will & Grace so much that it was just called Karen. Unfortunately, when Liz, James Franco, and his body pillow emerge from the bedroom, Randy is so shocked that he decides to go home.