For Betty it is 1. Samuel Gaddy, 2. George Ellis Gaddy, 3. Wm. Solan Gaddy, 4. Elijah Huston Gaddy, 5. Mama, 6. Betty.
For Lloyd it is 1. Samuel Gaddy, 2. Mary Gaddy, 3. George Gregory, 4. Samuel Gregory, 5. Bessie Gregory, 6. Lloyd.
So, Betty is the seventh [no 6th] generation from Samuel and Lloyd is the sixth generation. Now, you find 7 one way and 6 the other way and see where they cross on this chart. You will probably have to click to enlarge the chart to see, but it says they are forth cousins once removed. But, it is 6 both ways because Irene should not be included.
Well, as Betty pointed out, Irene should not be in her line, so removing Irene, this makes 6 generations each way, so Lloyd and Betty are 4th cousins, not removed at all. Lloyd and Erin would be 4th cousins once removed. But, yes, you would count Samuel as generation one.