Are you running the lilo under the already installed BT3 or running it off the live cd? In case you are currently logged in using the live cd you need to chroot into the installed one for lilo to work properly. This is what the commands you need would look like in that case:
Code:mount -o bind /dev /mnt/sda2/dev chroot /mnt/sda2 /bin/bash lilo -v


.. and if I don't have interent, nothing like a good linux book 