Question: What did Walter mean by, "You're killing your father, Larry!"?
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Answer: Generally, he means that the boy, Larry Sellers, is disgracing his family (Walter has huge respect for the boy's dad, but considers the kid a dunce). Specifically, Walter is blaming Larry for his father struggling to breathe; that's Larry's dad in an iron lung in the background. Walter and The Dude become louder, more insistent and more vulgar, but the kid still blankly refuses to answer, and all you can hear is the iron lung pumping in the background. Frustrated because the kid isn't intimidated, Walter lashes out: "You're killing your father, Larry!"
Charles Austin Miller