THE RED DWARF PLOT INCONSISTENCIES PROJECT v.8.0
2.25 THE UNIVERSAL EXPLANATION
In between Series 2 and 3, many changes took place in the show. The actors who portrayed Holly and Kryten were replaced, and continuity between Series 1 and 2 and all things after it is very tenuous at best. It is all explained away in the opening montage of Backwards (3-1), where a description of why everything is the way it is now is scrolled quickly on screen. For a complete transcript of this, refer to the Red Dwarf FAQ. The important bit is at the end, where it says: '- the same generation - nearly.' This implies that the things that happen before Backwards (3-1) and after it can occur in slightly different universes. Apparently, Grant Naylor have used this excuse themselves.
However, I find it to be a lame cop-out. It is presented here for completeness, and because some inconsistencies defy all explanations but this. Whenever there is a discrepancy between facts before and after Backwards (3-1), you can rest assured that there is at least one reason for it all.