For some time now, I have been booting my dual-boot SuSE/Windows box from a floppy. When the floppy is inserted, I get lilo and the choice of operating sysem to boot. When the floppy is not in the drive, the machine boots into Windows. (Well, at least it used to. I haven't booted into Windows for several years now :-) ). If you are willing to always boot linux with a floppy inserted in the drive, this could be the way to go. Remember, you will also have to edit your BIOS to make sure that the first device that gets booted from is the floppy drive.
What distro are you installing? It may give you the option during the install to load lilo's boot sector onto a floppy. I think the option you want to put in your lilo.conf before running lilo is "boot=/dev/fd0". You should also look at the lilo man page, specifically at the "-M" option and read "user.tex" in the lilo documentation.
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