lilo will try and write to the mbr if you don't tell it otherwise. since you have raids set up, in what i believe the primary drives, then lilo is complaining that it doesn't have the append="md0" set, (that's wrong, but it's in the man pages, 'man lilo.conf').
you have to tell it where to put the boot drive. take a look at the 'man lilo', it should be -m, or -M /dev/whatever.
when running the live disks, it might mess things up if you don't have things mounted properly. what you can do, if you have a floppy, is to make a grub disk, boot the linux, and then rerun the lilo from the running system. if you can boot from a flashdisk, usb keychain, then you can put it there also.
this is from memory,
if the live disk uses grub to boot, then you can just mount the floppy, and-
cp -p /boot/grub/stage* /mnt/floppy (or whereever)
you'll have to make an ext2fs on the floppy. and then do all of the cping.
or you can wget http://cerberus.cc/open/rescue_disk
dd if=rescue_disk of=/dev/fd0
it will take a minute or two to write to the disk, since the fs is on that image also.
then boot from the floppy,
it's going to look something like that. when you have the live disk going, take a look at your /boot and write down the kernel and the initrd.img so that you know what they are.
if you remember this, it will say you a lot of headaches later on. maybe it's just me that get's the headaches, but it's nice to know.