Here is how i do it:
image = /boot/tamu/vmlinuz
root = /dev/sda5
label = VL7STD64
# append = "resume=swap:/dev/sda7 splash=silent"
# initrd = /boot/initrd
read-only
image = /boot/vmlinuz
root = /dev/sda1
label = 1337
append = "video=640x480"
# initrd = /boot/initrd
read-only
image = /boot/vmlinuz-huge-2.6.37.6
root = /dev/sda1
label = hugeslack
append = "video=640x480"
# initrd = /boot/initrd
read-only
Lilo is installed on /dev/sda1. You need to have the kernel and System.map in the sub directory of /boot on the partition where lilo is installed as well as in /boot on the partition you are booting to. If you have a seperate boot partition, nevermind
