In the directory /boot of my new lfs system there are 2 kernels: lfskernel and vmlinuz-2.4.18-3. lfskernel was created no doubt, by the chroot process during the installation. And somehow, lfs system only accept lfskernel. Then I made a terrible mistake by make a change in /etc/lilo.conf ( change lfskernel to vmlinuz-2.4.18-3 ), then I /sbin/lilo.
When I rebooted, the init hand with the errors:
setting up default gateway [ok]
INIT: Id "1" respawning too fast; desable for 5 minutes
INIT: no more process left in this run level
I still can boot into the base distro and chroot to work in the lfs system and it worked fine but if I booted it (lfs) separately, the init hang.
Note: when I chroot(ed) from the base distro, I also changed the /etc/lilo.conf ( fls) back to lfskernel then /sbin/lilo. But that didn't help.