I've looked at various posts about editing lilo.configuration file, but it does not seem that there are any variables which control WHERE this lilo boot record will physicall go).
But there is. Look in /etc/lilo.conf for something like: "boot=/dev/hda". This is where the boot record is written to when you run "lilo" in a root console.
It seems that in my case the problem is not so much with "what" is in the lilo boot record but rather "where" BIOS is attempting to seach for the boot record.
Where the BIOS looks is defined in the BIOS setup of your PC.