Just been reading that, at first, Fawlty Towers was met with little enthusiasm by the 'critics'. One such, Richard Ingrams, wrote a particularly caustic piece only for John Cleese to gain revenge by writing an episode in Series 2 in which an hotel guest is caught in his room with a blow up doll. The guest's name, of course, was Mr Ingrams :-) :-) :-)
Martin Scorsese, a big fan of the show, rates the 'The Germans' episode as the best ever and says that Cleese's impersonation of Hitler was so tasteless it was hilarious.
I don't know (but i will be checking) if all 12 episodes are available on Netflix but i believe they are available to download on itunes.