Can someone explain what the vga=<mode> entry does in the /etc/lilo.conf file.

Does it control the appearence of the console when booted into init 3 (non-gui X) or does it just control the dmesg output as the system bootstraps into the init 3 console?

I tried booting the kernel with parameters: init 3 vga=ask to get a list of vga modes. I then I chose the index mode #1
(1 0F01 80x50) which I think is equivlent to vga=extended ....Anyways the boot started with small text messages but then switched the normal size text messages. Once I was fully booted to init 3 console it didn't look any different than it normally looks.

I think the boot text changed size after mounting the HD. So, my guess is that some boot script really controls how the console appears. If this is the case, then why would someone want to change his lilo.conf vga=mode at all?

It's used to control the (virtual) framebuffer. You can choose different resolution and color depth by changing the number. If it just says <mode>, it's not configured yet.

How do you setup Linux to enable recognize the different vga modes?

I've always had the vga=normal option in my lilo.conf. Are you saying it doesn't do anything unless linux has framebuffer support?

What about these vga=<modes> :
vga=normal -----80x25 text mode
vga=extended -----80x50 text mode
vga=ask
vga=785 -----640x480
vga=788 -----800x600
vga=791 -----1024x768

Could it be that the vga=<mode> lilo.conf option works with both the standard linux console & the framebuffer console depending upon the mode value you supply it? Maybe the decimil numbers apply to a framebuffer console & the text values apply to a standard linux console?

The text values are probably just labels for spesific numbers. You can't change the resolution/font size of the terminal without a framebuffer (terminals in X doesn't count).

Also, framebuffers is more than just changing the looks of the console. You can use it to watch movies, images etc. without X.

Framebuffer have to be enabled in the kernel. You'll find it under Device Drivers -> Graphics support. You have it enabled already though (zcat /proc/config.gz | grep CONFIG_FB to check).