Jochen: I wouldn't so much worry about the translation of the words. All the rules you see are essentially mathematical equations where some of the variables would need to be replaced by other variables.
For the "Hello!" it works as follows:
Knght: Hello! (three words or less, thus just one taunt)
Taunter:
<taunt>
= <sentence>
= <past-rel> <noun-phrase>
= your <past-person> <past-verb> <article> <modified-noun>
= your mother was a <noun>
= your mother was a hamster

For each of the rules we have k=1 becuase it's the first line we're feeding into the taunt generator, thus n=1, namely th first fo the choices in all of the rules.
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There are two types of vessels, submarines and targets.