I did a harddisk fresh install of rc2 into a partition which started at cyl 1177. Although lilo could not run properly since linar is specified, anaconda did not produce any error messages.
Mmm ... maybe it tried. I now remember that I got some "garbage" (partial clutter on the screen) on the screen: "ning: device 0x030a" "for linear mode (try" I now believe that this was from lilo. However, there was nother from anaconda.
Was this a pre-existing partition you used for the install?
*** This bug has been marked as a duplicate of 16982 ***