O.k. I can't get it to load. At first it said no boot media found - then I found the reset button for the VM. Next I got a boot screen where I had to type the command to tell it to look in sbd1 to boot from. That didn't work. i don't remember exactly if it is setup in sdb1 but I assume it is because thats the only system installed on the drive. I tried accessing cfdisk from the Boot prompt to verify this, and it would not load it.. must not be in there, only on the ISO.
I fixed it. It wasn't that it wasn't loading with that command.. it was hanging for a long time. I let it run while typing out the above post, and to my surprise when I looked at the VM, it had loaded to the screen that asks you to set up LILO. I used the defaults. Then when i came to the screen to set up Boot options for each startup type, I also choose the defaults for each type.. that seemed to work and now, I'm in the system normally. I can shut it down and log on, without the delay I had at first boot after typing the command to tell it where to look for the OS. I do hope I didn't not enable something I should have enabled.