I am not familiar with K3B but you have a devfs path pointing to an IDE CD-ROM (or DVD-ROM, RW, whatever - an optical unit anyway) - /dev/ide/host0/bus1/target1/lun0/cd. When you use SCSI emulation, as you have indicated in your lilo.conf, you should be using a SCSI device instead.
First make sure the ide-scsi module is loaded: modprobe ide-scsi, then check if you have a SCSI CD device instead. It will probably be called /dev/scsi/host0/bus0/target0/lun0/cd or something very similar. Use that device instead.
If you had a symlink /dev/cdrom (or /dev/dvd or something) pointing to the IDE cd device you may have to recreate it pointing to the SCSI device instead.