Thanks all
heh, solved it myself. Actualy KDE's LILO tool tipped me off. Seems that the partion wasn't written to boot. Apparently whatever LILO install error that directed to boot off the floopy was the boot command never got written. Unless of course, linux wantsd you to WRITE changes before leaving CFDISK (FreeBSD gives a safety net of not writing unless you want, or else writes to disk as part of the install).
I went to CFDISK, made the disk bootable and WRITE it, then rebooted, then the familiar red box showed up with LINY written in it
Coolness