It might be because it's a virtual PC, but try installing it (it being LILO) to the MBR if you can do that in the VPC.
I suggest that because Slackware is sometimes harder to learn on, and it will sometimes give new users to Linux a "bad taste" because they don't understand how to make things work for them. The link I gave you up there is a link to a more "newbie" directed distro. It's not any less Linux than Slackware, in fact they both have alot of the same programs and features, but the one above is usually easier for a newbie to install and learn with. Then once you get familiar enough with how things are setup, and things of that nature, then the transition to a more "configurable" and less "bloated" distro like Slackware is much easier.
It's like learning karate, if you start out trying to train with the black belts, it's going to be VERY hard for you, and you might think it's not worth the work. But if you start out with a white belt, and progress, learn, and advance, then once you are ready to move up to black belt, it's not nearly as hard as if you had chosen the other route. But it's all still going to teach you karate in the end.
If you really are simply wanting to "figure" this one out, you may want to do some reading. Check out the tutorial over at www.linux.org
and follow the lesson all the way through. There are also other sites with good info like that, but that's my personal favorite. This site as well (Linuxquestions.org) will have TONS of info for you, but you will have to read up on alot of it, especially since you are going to try to apply any knowledge gained to a Slack setup.
The bare.i kernel shouldn't matter at the point you are having problems at, it's LILO that you will need to concentrate on to move forward into the dive for Linux. Get that part setup so that you can at least boot your system, then you will find out what other things you will need.
Try installing into the MBR, and if that doesn't work, make a boot floppy, and see if that route helps.