It goes back even further, to the earliest days of The Smiths. They've never liked each other, at least publicly. It's hard to know how serious they are about their dislike of one another, as New Order (particularly Hooky) and Morrissey alike seem to be in the habit of slagging off peers. I don't think any of the public remarks should be taken seriously. I mean, I'm sure Morrissey doesn't like Bernard Sumner and vice versa, but I don't think it amounts to serious hatred or anything. These "feuds" are overhyped.
I'm pretty sure there is a Manchester-based dislike of Morrissey. I say this because many Mancunians have said Morrissey is not a "real Mancunian" (the standard line is, "He's a genius but a real twat and not one of us"). Of course, since I am an ignorant Yankee pig, I wouldn't dream of knowing the first thing about Manchester's tribal attitudes, but this is the impression transmitted through interviews and such.
Quite correct. It was mainly due to the Smiths moving out of the 'Manchester scene' and not signing to Tony Wilson's label and signing to the London Indie label ( Rough Trade ) instead. Oh, how this was a thorn in the side to Anthony H. Wilson and the other Factory crew. I used to know Hooky quite well around the 1888/91 years and I would often try and probe him with questions about Morrissey, but the worse thing he had to say about him was that he was boring.