Yes, you can dual boot linux OS's. You just make a spare partition for it and install to there. You can share the swap. When installing the new linux, have it install lilo to it's boot partition, not the mbr, then set the lilo/grub in your original linux to boot the other lilo/grub...
That's the easiest way, tho there are ways to avoid having to go through two lilo bootloaders if you want to. That usually involves copying kernels around and stuff