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It'd probably be best to install windows first, because it has an obsession with controlling the boot record. Then install redhat and have it install grub to the MBR of whatever hard drive you plan to boot from. It will give you the choices.
You asked us to take you through it step by step, but the installation for Windows and Redhat are fairly seamless, and will get you there with little trouble.
If you have other problems, Redhat.com has an installation guide for whatever you're looking for.
Grub stands for GRand Unified Bootloader, and Lilo stands for LInuxLOader. They're programs that will control your dual booting. If you install them to the MBR (Main (master?) boot record), they give you an interface where you select which operating system to boot into.
GRUB , LILO just refer to your Linux bootloaders - to load the kernel from the hard drive the BIOS needs to find a bootloader in a BIOS designated boot sector - the bootloader itself contains the neccesary "parameters" to find kernel.
The MBR is just the Master Boot Record - the boot sector on your 1st hard drive