Lilo seems to have some problems with the "append" command in /etc/lilo.conf. The machine has 1GB RAM on board, which causes the kernel panic. I have to specify "mem=1000m" to the kernel. When I manually type "linux mem=1000m" at the lilo prompt, everything works fine. However, if I use the following /etc/lilo.conf and run lilo to install the loader. The kernel panic remains as if I've done nothing. boot=/dev/sda map=/boot/map install=/boot/boot.b prompt timeout=50 append="mem=1000m" image=/boot/vmlinuz-2.2.5-15smp label=linux root=/dev/sda2 initrd=/boot/initrd-2.2.5-15smp.img read-only image=/boot/vmlinuz-2.2.5-15 label=linux-up root=/dev/sda2 initrd=/boot/initrd-2.2.5-15.img read-only
Just let you know, it's working this morning. I am quite confused at this time. Maybe it's because of my mistake. Sorry.
Unless it happens again, we'll assume that you accidentally forgot to run lilo after modifying lilo.conf -- something that has happened to most of us. :-)