Of course it is possible. Just format for each, and make sure you edit your lilo.conf to the correct specs of where your second install resides. Say for example, you have SuSE installed now, well make sure to copy the lilo.conf configuration of that, then install your second Linux distro. It will most likely install LILO over your existing one unless you specify it not too, then when you boot, you should see your second one installed and no option for your original SuSE install. Once booted, copy your configuration of your SuSE to you lilo file.
Not exactly what it would look like, just make sure your image is pointing to the right partition.
Hope this Helps....