What does that what she said mean?

Question

from the office

Answer 1

The quote is: "That's what she said."

Off of WikiAnswers:

It's a way of turning what someone else said into a double entendre. For instance: you might be walking with a friend who sees an enormous dog. He says "that's sure huge!" In response, you say "that's what she said." The implication is that you're talking about a s*x partner, insinuating that she made a comment about your genitals. The line pretty much always is a smutty joke.

http://wiki.answers.com/Q/What_does_that...

Couldn't have said it better myself.