Was a replica dartboard
And the man on the floor
Sorta went out of window, over the lawn
And round to the mad kid
"Please take this medallion,
Please wear this medallion.
It's no sign of authority.
Wear the gold and put it on"
(Winter)
Man on the first floor said
"I just looked round
I just looked round
I just looked round
"And my youth it was sold"
There fly krakens
And sometimes, that little.....
Makes me tremble
Courtesy winter
The mediocre has 2 lights, the sign of genius is three lights
There's one light left, that's the one light
That's the science law

Another transcription of the first section of lyrics, as performed by Taylor Parkes in an article for The Quietus about Smith's lyrical style circa 1978-1983 (see http://thequietus.com/articles/03925-the-fall-and-mark-e-smith-as-a-narrative-lyric-writer), reads as such:
"On the first floor of the dryout house was a replica dartboard And the man on the floor, His soul went out of the window, over the lawn And round into the mad kid "Please take this medallion Please wear this medallion It's no sign of authority Put the gold on, put it on Courtesy winter
His soul went into the mad kid And the man on the first floor said 'I just looked round I just looked round I just looked round And my youth, it was sold.'"
He clearly say very similar lines (in a completely different order) on the Peel Session version, indicating that this is the likeliest interpretation.
Hence, not merely an odd narrative sequence, but a truly eerie one.
The "lights" bit is both hilarious and perversely charming.