The script uses devices specified with the following syntax:
device=/dev/fd0
       (ex: `basename $0` --device /dev/fd1 2.0.31)

But copies them as follows:
mkdir $MOUNTDIR/dev
cp -Pa $device $MOUNTDIR/dev
cp -Pa $rootdev $MOUNTDIR/dev

Resulting in fd0 and root device such as sda being one level
below where they belong.  e.g. $MOUNTDIR/dev/dev/fd0
This causes lilo running chrooted there to fail with a 'file
or directory not found' error.

Since this problem exists in base and updated RH 6.0 there
must be a lot of folks with floppies that won't boot when
they need them to.

The script can be fixed by replacing the above two copy
statements with the following:

cp -Pa $device $MOUNTDIR
cp -Pa $rootdev $MOUNTDIR