Success! LILO 23.2 on VL 6 no longer returns the error mentioned in the first post of this thread. I added Viperr (a Fedora derivative) manually. Only had one small issue: Viperr did not have an initrd, but rather had a initramfs. I pointed the initrd line in LILO toward this, and booting into Viperr resulted in kernel panic, keyboard flashing, hard power off required. I then booted into VL and totally removed the initrd line for Viperr, and Success!! Viperr now boots from LILO, correct splash and everything. Additionally, the LILO 23.2 package created by nightflier places a nice lilo.conf example in /etc, which is very informative about configuring LILO. To sum it all up, LILO is alive and well and capable.
BTW, maybe that LILO 23.2 package should be put in the VL 6 repo. That way if anyone else has this problem, all they will need to do is update LILO via Gslapt.
I have not tested whether or not the new LILO will autodetect the newer kernels, however, i will create another partitions and install VL7 Lite, which has the the newer LILO. I will then see during installation if it sees my Viperr installation. I will post this information back when i have completed the task.
Again, many appreciative Thanks to all who have helped on this issue.