Dual Hdd Boot Load Problem

Ok heres the scenario. for my server ill be using rh, and for other things windows, i have windows on one hdd, and tried to install rh on the other, now i typically dont have any problems installing any nix system, and have done it dozens of times. But i never told lilo to load on the / partition, rather than the MBR because, Linux in a Nutshell told me that i need it on there in order to use nt's boot loader with the dual hdd's. i know all the commands etc to makign the bootloader thats not the problem. I have 2.

[1.] Ok, i need to make a linux boot disc in order to copy the linux boot sector file to the c drive in windows. I installed the floppy, got the ribbon cable aligned with pin 1 etc, but it tells me my floppies arent formatted. in which i go back to windows to format, and they still give me the same error. its not a jumper problem either, yet the floppy still reads in windows, and linux still reads Fd0 on boot. ??? Im totally confused there.

[2] After redhats installation, it always brings me to grub, which is odd, because i installed lilo, yet its not the GUI for grub, its the command based grub, where you cant load x, which i find remarkable that grub loads when i specifically told it to run lilo, and even gave it the default volume label. If you have any ideas, im clueless. ive never had problems so non-distinct like this.