"Two: meet your horrible new dad with a grudge against me" means exactly what it says. my parents keep a grudge. It's just what happens as I transgress from their expectations. The idea "new dad" is an attack that's wide in scope. A hyperbole of an [emotionally]absent and critical father with the idea that the old suppress the young irrationally. I gave it a go because those lyrics do seem substantial. People say similar things about Pavement's lyrics. But I think their poetry is unexpected and subliminal, like a shadow of a symbol.
Having been on boths sides of this situation before I feel this song must be partly about how keen people seem to be to bombard you with pointless and trivial advice in response to a real problem. Hence the avalanche of randomness (I know its a Fall song...)
The lyrics are so fucking stupid, it's so perfect. They make no sense whatsoever and that's the beauty of The Fall. They probably made sense to Mark E. Smith at the time but in practice, it's uncohesive and brilliant. I mean, what do "slippery shoes for your horrible feet" and "Two: meet your horrible new dad with a grudge against me" actually mean? :]