I have read that if you enter 'linux single' at the lilo prompt it will automatically log you in and you will be root. I tried this and it still gives me a login prompt. If I enter root, I still need a pass. The only difference is that once i do log in (with my account or root using passwords for both) it says
check your /etc/inittab. This file is parsed even for single user boot, and I'm guessing your single user boot is still setup to login.
For example, my inittab has a
# What to do in single-user mode.