I'm not sure if this is a bug in the installer or in lilo. I performed a custom install of RH6.2 using the x installer. I changed the lilo label to "Redhat 6.2". lilo evidently does not like either spaces or periods in it's labels. When the install completed and lilo was run, lilo indicated an error in the lilo.conf file. The installer, however, did not detect the error and rebooted my system without complaint. Since lilo did not install the boot loader, the system was left in an unbootable state; it would print out LI (the first two letters of the LILO: prompt) then freeze. I was able to use a boot floppy, edit the lilo.conf and rerun lilo, fixing the system. I checked the man pages for lilo.conf and was unable to find any mention of restrictions on the label= line. If limitations against using spaces or periods are not documented, I'd consider this a bug in lilo. If these restrictions are documented, the installer should check for valid input. It should, in any event, monitor lilo for error conditions and at minimum allow you to edit the lilo.conf before completing the installation and rebooting.
You are correct that the label line in the lilo.conf file cannot contain spaces. I am forwarding this issue to a developer for clarification in future releases.
*** This bug has been marked as a duplicate of 10551 ***