You don't need partition magic 8, RH 8.0 comes with disk druid which is easy to use, you are gonna be prompted during installation about this, just choose to partition with disk druid:
-Choose the ext 3 file system.
-Swap space = 256 mb if you have this or more RAM. Your swap space should be double your Ram size if you have 128 mb or less.
-mount point /


Partitioning is the only dangerous part of the installation the rest is pretty much pressing next.
I installed RH 8.0 last week and didn't have problems with the installation.
Here you can find how to put LILO on a floppy if you want.