it seems that your configuration is somewhat wrong..
try to change the lilo.conf file like below
prompt
timeout=50
default=linux
boot=/dev/hda
map=/boot/map
install=/boot/boot.b
#message=/boot/message
lba32
image=/boot/vmlinuz-2.4.7-10
label=linux
initrd=/boot/initrd-2.4.7-10.img
read-only
root=/dev/hdb2
# I have changed here from 5 change to 3 or 2. this might help
other=/dev/hda3
optional
label=dos
call me if you what
mayank johri