Family Guy---Peter Griffin demonstrates to "Surfin' Bird" by the Trashmen, although I am partial to the Cramps version myself....
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http://www.youtube.com/watch?v=exhNT2_bHs8 Watch and learn.
In the classic Watusi, the dancer is almost stationary with knees slightly bent, although may advance forward and back by one or two small rhythmic paces. The arms, with palms flat in line, are held almost straight, alternately flail up and down in the vertical. The head is kept in line with the upper torso but may bob slightly to accentuate the arm flailing. The dance, which became popular in the American surf/beach sub-culture of 1960s, may be enhanced if one imagines that ones feet are on sand.