Because Grafton is old, obsolete radar that doesn't have advanced detection features of a Doppler radar. As for the false echoes, just ignore those, they're seen frequently on Brisbane's and Gympie's as well. If you read the
Bureau's FAQ on radar images, it should explain to you why the radar sometimes mistakes various atmospheric conditions as rain. On Gympie's radar in particular, there is sometimes a noticeable false echo to the north of Frasier Is which sometimes passes off as a rain band. I don't see why that can't be fixed as the previous radar didn't have that issue that I knew of.
Speaking of radars, Mt Stapylton went down again yesterday. Darn it. You would think the Bureau would invest in strengthening the radar and make it more reliable during storm days!
*end of rant*