Mathman, thanks for the editing tip.
According to Marsha Kinder a Professor of Media Studies at the University of Southern California, the 1994 Winter Games in Lillehammer holds the distinction of being the most watched television event in the history of television - thus far. Professor Kinder notes this is a Worldwide television audience and not just exclusive to an American audience only.
As for an American audience the last episode of M*A*S*H February 28, 1983 still holds the number 1 ranking. The Winter Olympics Ladies Technical Program (Olympic coverage of CBS evening of February 23, 1994) is ranked at number 6. Yet, it still holds the distinction of being the most highly rated television program in the last 20 years for an American audience. The Ladies Freestyle program held on February 25, 1994 was (and still is) the highest rated Friday night television program in American television history. This information is also verified by "The World Almanac" 2003 edition.
At first I was in doubt of Professor Kinder's assertion that the Lillehammer Winter Games was the most watched event in television history when you include a Worldwide. Yet, the Professor is correct.