You seem to have the purpose of lilo and grub confused. They perform the same functions. Linux is not like windows, you don't have to re-install the OS when something goes wrong, in this case you would just have to re-install grub on the MBR which is a 5 sec process. Unless your class says to change it from lilo to grub, then lilo can do everything and you need not worry about grub, just reading the documentation on dual booting in lilo.
Please read the rules about asking questions about homework.
I would walk you through this but since this is a homework question you will learn tons more from reading the manuals, text and searching google.com/linux. Yeah I know, if only you would have left out the first few lines of your post. Knowledge is power ;-)
On another note, this class sounds very interesting, what kind of things are you doing/going to do.