"But what does the SCSI drive have to do with installing the boot loader on a floppy? I would understand if the boot loader showed then failed to boot from the SCSI drive, but it fails even to show up in the first place."
You are right. You should get at least LI from the boot floppy LILO. Maybe the problem is in the boot floppy configuration. Here is a working lilo.conf for floppy which you can check your lilo.conf against. I don't have one for a grub boot floppy.
# bootdisk LILO configuration file
boot=/dev/fd0
install=/mnt/floppy/boot.b
map=/mnt/floppy/System.map-2.4.22-1.2115.nptl
vga = 771
lba32
# Linux bootable partition config begins
image = /boot/vmlinuz-2.4.22-1.2115.nptl
vga = 771
initrd = /boot/initrd-2.4.22-1.2115.nptl.img
root = /dev/hda3
label = Fedora
append="hdd=ide-scsi"
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Be prepared. Create a LifeBoat CD.
http://users.rcn.com/srstites/LifeBo...home.page.html
Steve Stites