When doing a non-custom install (such as GNOME Workstation or Laptop), you are never presented the screen to configure how lilo is setup. You should probablly be shown the lilo config screen if you didn't use the automatic partitioning. At this point you've shown that you don't want the hard drive setup done automatically, so you should be given the option to configure how lilo is setup and more importantly, where on the hard drive lilo goes (MBR vs partition)
Thanks for the suggestion.
This defect determined (by Michael Fulbright) to be MUST-FIX for Florence Gold release.
You can get the desired effect by running the install in expert mode, or by doing a custom install. Changing this at this point would significantly change a code flow which has been tested alot, and I would prefer to address this type of problem early in a release cycle.
Done now