The overlapping generation is what finally pushed me hard enough to do some research online - it pushed me over the edge too.
My problem wasn't with the whole anointed thing though - just with the fact that there's absolutely no scriptural support for their current definition of the word "generation." Furthermore, even if they didn't specify a hard end date, their prediction that armageddon would be here before the end of the 1914 generation qualifies as a false prophecy.
As for the issue of the anointing taking place in 1919, that's not really a problem for the overlapping generation the way I understand it. There are now two different 'anointings' - there's the anointed 144k, which have been around starting after Jesus' death, and then there's the anointing of the FDS. These are two different events that really don't have anything to do with one another other than the use of the word anoint/anointed. The overlap is supposed to be between generations of the anointed 144k, not generations of anointed FDS members. Though in their example they're confusing matters by using franz and other GB members to explain the overlap.
That said it's still all a pile of rubbish.