Problem: When the boot partition is above the 1024 cylinder limit LiLo generates a fatal error because cylinder is > 1023. Solution: Setup should include the keyword "lba32" in lilo.conf when installing above 1024 cylinder limit.
Was this using a pre-existing partition for /boot? The installer currently does not impose restrictions on pre-existing partitions being used. If a boot partition is created from scratch then it is forced to lie < 1024 cyl.
I used an existing partition and mounted it as /. No other partitions where mounted. The installer does not have to impose restrictions on creating partitions any longer because as of Lilo 21.4.2 the 1024 cylinder limit has been solved (if the BIOS supports this of course).
*** This bug has been marked as a duplicate of 12234 ***