When the lilo screen comes up, hit tab
then enter this
"linux root=/dev/hdxx ro vga=791"
replace "hdxx" with the correct location of the kernel in the hard drive... your / partition (ie, hda1, hdb1, hda3, etc)
then hit enter... your fonts should look better
if they do, log in as root
edit your /etc/lilo.conf and find the line that says "vga=xxx" and change that to "vga=791"