The title is a parody of the song "I Love a Parade," which is the sort of song found in music primers and high-school marching-band classes.

That "backwards and forwards thing" that Jake is thinking about is a palindrome. And it wasn't one.

Don't parades usually occur in the afternoon, not the evening?

Jane's comment "Godspeed Indiana Morgendorffer" is obviously a reference to the Indiana Jones movies. I'm not familiar with the films, so I don't know if that particular line was used, but it could also be a reference to the "Godspeed John Glenn" comment made for the Mercury launch. Note that his craft was named Friendship 7, a possible extended reference.

World War I was ostensibly started by the assassination of the Archduke of Ferdinand. He was paying an official visit to Sarajevo during the Serbian National Festival of Vidovdan, which was a calculated insult. The Archduke's driver took a wrong turning during the afternoon (blocked by a parade route, IIRC), and the Archduke was shot by an assassin of the Black Hand.

Daria's line about the mascot's head being so full of dreams is a reference to the play The Elephant Man. This also ties in with her hydrocephalic skull replica from "The F Word".

Daria's response to Tad's question about the favorite part of the parade is probably implying that she considers the whole parade a big turkey.

Tom's comment about the pod people is possibly a reference to a really cheesy sci-fi B movie of the same name. More likely, it's a reference to "Invasion of the Bodysnatchers" wherein spores from space have come to earth. The spores grow into pods, which duplicate and then replace the local residents. They're perfect replicas except that they lack the ambition, drive, determination and overall humanity of those they have substituted for.

Jodie and Mack might be a little to sensitive about their race. There's nothing at all unusual about the captain of the football team and the cute going-to-be-Valedictorian being made Homecoming king and queen.

When Daria and Tom loose Tad, Daria says "Did we pass any windmills?" Although this refers to how Tad got lost (he went to look at a windmill in a toystore window), it could also be a reference to Don Quixote. One of his (most well known) adventures involves tilting at windmills, and Daria's probably feeling this quest for TP is pretty Quixotic..

Daria's lack of humanity comment is the second recent reference to the Hindenburg disaster.

Tom's comment after pulling the head of the Lawndale Mascot is a reference to Scooby-Doo. Nearly every episode contains a similar line.

Daria's comment about an amazing Technicolor Dreamcoat is a Bible reference. There's also been a play by that name. This is the same reference when she makes her comment about speaking to Pharaoh about his dreams.