up2date failed to upgrade my kernel, instead muttering something about a test lilo.conf failing. It did build an initrd successfully. My lilo.conf is attached.
Created attachment 21625 [details] renegade lilo.conf
I'll add a copy of your lilo.conf to the up2date test suite. Offhand, I dont see anything odd about it that might cause problems, but will add it into the testing cycle to see.
lilo has been superseded by grub for next release.