When a person's actions contradict their words, things can get pretty confusing. Your grandfather offers up two totally different versions of what is "right"--should you do as he says or as he does?--and, naturally, this contradiction is giving you headaches. One thing you might want to try is simply asking your grandfather how he can say he believes one thing, that one should respect other human beings, and then behaves in another way entirely. Such a prompting might make your grandfather at least think about the contrary ways he's living, while allowing you to vent, without any nastiness, some of your frustration at his inconsistency. You might also want to try talking to your parent on your grandfather's side about what's going on, obviously in a nice and respectful way. Your parents might be able to give you a little insight into why he is the way he is and could perhaps speak to your grandfather on a more adult and, maybe, more effective level.

It would be great to make your grandfather see your point or at least acknowledge that his talk is NOT tolerable to you and makes you uncomfortable. What is more important, though, is the way that you are going about forming your own beliefs and heading in your own direction.