Red Hat <=7.1 ship with an old version of lilo, 7.2 ships with grub which dosn't have a problem with >1024 cyl. Lilo was fixed for >1024 before RH7.0 so I don't know why redhat persisted in shipping a broken distro......oh wait......7.0 was so broken in other ways that the boot loader was a minor issue
Do your self a favor and get a copy of mandrake.