I had the same problems with the kernels in current. One resolution is to disable ide in the kernel. See my post here:
There may be an option to pass at the lilo prompt as well, but I have not tried this. I looked in the changes & hints text which mentions passing a "no probe" option to lilo at boot, but this was with respect to dma not sata drive detection.
The "fix" in the other post will solve your problem if you are compiling a custom kernel anyway.
Just wanted to add that entering "hda=noprobe" at the lilo prompt will also allow you to boot the huge kernel without the kernel panic due to the kernel trying to boot hda instead of sda. I will assume that, as stated in the changes and hint text, passing this option during the install will also enable the install to procede without error.