Ok let the brainfusing begin:

Here my 886
 Code:
Your solution passed all tests

KiXtart
KiXtart Version  = 4.60
KiXGolf Script   = kixgolf_tg.kix

Computer
OS               = Windows Vista Ultimate Edition
CPU              = Intel Pentium Model 15
Speed            = 1662 MHz
Memory           = 1014 MB

KiXGolf Scoring Engine
Scoring Engine   = 3.3

KiXtart Golf Score
Tournament       = Taunt Generator
Processing Start = 2007/12/18 18:34:02.046
Processing End   = 2007/12/18 18:34:02.374
Duration         = 0000/00/00 00:00:00.327
KiXGolf Score    = 886

 Code:
Function a($b)
	Dim $z,$y,$c,$t,$,$d,$v,$w
	For Each $c in $b
		For $t=0 To 1
			$c=Join(Split($c,"  "))
		Next
		$a=$a+"Knight: "+$c+#
		For Each $v in Split($c)
			$y=0
			$z=1
			For $w=1 To 72
				$z=$z+(Substr($c,$w,1)=Substr(theholygrail,$z,1))
				If Asc(Substr($v,$w))>64
					$y=1
				EndIf
			Next
			$t=$t+$y			
		Next
		$y = Split("conspicuous categorical positive cruel incontrovertib steed king first-born mo fa grandmo grandfa godfa Hamster Coconut Duck Herring Newt Peril Chicken Vole Parrot Mouse Twit silly wicked sordid naughty repulsive malodorous ill-tempered")
		For $v=1 to $t/3
			If $v=1&$z>12
				$z="(A childish hand gesture).#"
			Else
				$d=$d+1
				If $d mod 3=2
					$z=$y[$ mod 11+13]+"! Your "+$y[$/4 mod 3+5]+Iif($/4 mod 2," masquerades as a "+$y[$/8 mod 5]+"ly "," is a ")+$y[$/4 mod 7+24]
					$=$+1
					$v=$v+1
				Else
					$z="Your "+$y[$/2 mod 5+8]+"ther "+Iif($d mod 3,was,personified)+" a"
 				EndIf
				$z=$z+" "+LCase($y[$ mod 11+13])+".#"
				$=$+1
			EndIf
			$a=$a+"Taunter: "+$z
		Next
		$a=$a+#
	Next
	$a=Split(Left($a,~),#)
EndFunction
_________________________
It's better to have scripted and died, then to never have scripted at all