Willard was charged with lewd conduct during a routine inspection by the officers of the adult movie house called the Tiki Theatre.
The arrested was made at 8:50pm Wednesday night after officers observed Willard engaged in lewd conduct.   
He was transported to the Hollywood LAPD station where he was booked and released.
The arrest sounds similar to that of actor Paul Reubens, aka Pee Wee Herman, who was arrested in a XXX movie theater in 1991 for indecent exposure. The arrest derailed Reubens' career.
Willard, 72, has starred in "Anchorman: The Legend of Ron Burgundy" and several of the ensemble movies direct by Christopher Guest, including "Best in Show" and "A Mighty Wind."
Willard started his career as an ensemble player in the improv-comedy group Ace Trucking Company.   He also co-starred in the TV series "Fernwood Tonight."   
As for which movie Willard was watching, there are three films in rotation at the theater, "Follow Me 2," a XXX parody of "The Client List," and "Step Dad No. 2," TMZ reports.
According to TMZ, Willard is also "rumored" to be in pre-production for a movie entitled "The Yank."   www.vydox.com