Just keeping another kernel (image) in lilo isn't quite enough. I had to take care of the modules too, including some (e.g. vboxdrv) that I'd compiled outside the kernel source. I'm a bit out of practice at compiling kernels so I did find this quite hard to get right. Also I'm working on a laptop I used for work so messing things up is a big deal.
From what I could glean from a search of the internet, it seems that the timer tick is more of a legacy thing and there is no real downside to a tickless kernel.
I didn't see a huge saving in power from going tickless, probably because the intel Atom processor (it's in an asus eee pc 1000h) consumes so little power. The C2 state uses only slightly more power than C4 and even at full tilt in C0 state the power increase is only a couple of watts.
However, I did get powertop to show we how to save a few watts of power. So running slack13 with kde 4.2.4 and wireless I dropped from 13W down to 10.5W pushing battery life from about 4 up to almost 5 hours under light use. The main power saving seemed to be switching off power to usb devices that weren't active, in particular the built-in webcam. To achieve this I followed powertop's advice and added this to lilo.conf
Code:
append=" usbcore.autosuspend=1"
but this didn't quite work. I also added this to rc.local to stop the webcam getting power when inactive:
Code:
echo auto > /sys/bus/usb/devices/1-8/power/level
Hope this is useful to someone.