LI means that you've made it through the MBR and into the second stage of the boot loader (booting the bzimage from the /boot partition.)
More than likely, your /boot or /root partitions are not readable by your BIOS. You may want to make sure that your BIOS supports disks > 2047 Mb. If your HDD is bigger than what your BIOS can support, and especially if you're using some type of disk management software to see the drive, you'll need to find another way to boot the system.
The best solutions for using large disks in older systems is to go get an IDE controller to put into your system. Reload the OS with the disk attached to the IDE controller and you should be good to go.
If this doesn't address your problem at all, sorry for the post. It's just that this is a very common problem with the older system and larger disks.
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