Release 3 of mkbootdisk-1.2 was changed to include the path during the creation of the device files " cp -Pa ... $MOUNT/dev". This results in entries of the form /dev/dev/fd0, and /dev/dev/hda*, which causes LILO to fail since it cannot find the device entries where it expects them. Of course the disk is unusable.
assigned to notting
fixed in mkbootdisk-1.2.1-1