Using the 'lilo --location none' option in ks.cfg appears to have no effect; the LILO configuration is performed anyway.
I was able to replicate this problem with 6.0 in our test lab. I created a kickstart file and had the line lilo --location none The installer stop at this point to ask me if I wanted to put lilo on the mbr or root partition instead of choosing skip as it should properly do. I chose skip and everything continues on.
In the 6.2beta3 installer, passing this to kickstart causes "ValueError: list.index<x>: x not in list" in installclass.py, line 27
This issue will be fixed in the next cut of RawHide (after 2/14/00)