So you've got Woody with 2.2 kernel and ext2 file system and you think that Debian is fast? You ain't seen nothing yet, baby.
Most benchmarks show that reiserfs is much faster file system. Also 2.6 kernel is the most responsive Linux kernel yet for desktop use. The problem is that 2.2 kernel doesn't support reiserfs -- you'll need to reinstall your system using at least 2.4 kernel to enjoy the benefits of reiserfs. This can be done from Woody installation CDs like macondo describes, or (even better option) you can download the latest Sarge beta installer:
http://www.debian.org/devel/debian-installer/
BTW, I use Grub and I have the following in /etc/kernel-img.conf to make Grub update itself automatically when I install new kernels or uninstall old ones:
do_symlinks = yes
relative_links = yes
do_bootloader = no
do_bootfloppy = no
do_initrd = yes
link_in_boot = no
postinst_hook = /sbin/update-grub
postrm_hook = /sbin/update-grub
This may also work for Lilo if you substitute "/sbin/update-grub" for "/sbin/lilo".