Okay, what I want to do is this:
I'm having two HDDs, first one with 40GB, two partitions (7GB,31GB, FAT32 both), that has Maxtor's EZ-Bios installed in the MBR (my mobo's BIOS doesn't see HDD's full space otherwise), and the second HDD is actually partitioned with Hidden FAT32 (otherwise it gets right between the two partitions of my first HDD, in Windows).
I'm willing to switch to RedHat 8, full time, but for some time I want to test it, so I'll install it to the second HDD. I'll partition this HDD (with partition magic 8, i know it can be done from the linux install) with an 7GB EXT3 partition and one 1GB partition for the Linux swap.
Now... where do i put LILO? I can't put it in the mbr, cause the EZ-BIOS is there, so.. how am I gonna load linux? From a floppy?
Also... I don't think windows will see the linux partitions, will it?
Thank you in advance!

First of all, I don't think there is need for 1GB swap, that can even slow things down. Keep your swap partition at 256 MB. If you have 256 MB RAM or more, that swap will hardly get used at all.

Where to put lilo? (I'd go with grub, but that's your choice.) You have EZ-bios on the first hd mbr. Can you tell it to boot from the second hd? Then install lilo in the second hd mbr.

I think you could also replace ez-bios with lilo, as lilo can handle large disks on its own. Or if you have Win2000 or XP you can copy the linux bootsector to windows and have the nt-bootloader take care of selecting linux (I've never done that, but there are enough threads and howtos around to help you on that). Another option is booting linux from windows using loadlin.

As you see, there are many ways to go... That's the beauty of Linux.

Thank you for your quick reply yngwin!
I've resized the swap partition as you said, installed grub instead of lilo too.
For now (btw ez-bios doesn't work as boot manager also, unfortunately...), I'm starting the system with a floppy, grub is on the primary partition of the second hdd, not in the mbr.
The install went smoothly... got all the updates for the components I selected in the custom install...
All I gotta do now is figure out how to switch to the newer kernel (the program that analises the system and tells me about updates, said that the system is using kernel x and not the newer version that is installed and that i should reboot; i rebooted but i got the same message).

Okay, found out that on my own (after making the boot disk unusable by writing a bad kernel image on it).
So this should be useful for newbies, it isn't hard:
-Making a bootdisk in the linux rescue mode-
1. Boot from RedHat Linux CDRom 1
2. Press F5 for instructions on how to get into rescue mode or simply write "linux rescue" at the boot prompt
3. check media (or skip this)
4. let the installer look for the Linux install
5. let it mount in read-write mode
6. use command chroot to change to the mounted install; like "chroot /mnt/sysimage"
7. get to the boot directory ("cd ..", "cd boot")
8. get the files in it with " dir "
9. use mkbootdisk like that: mkbootdisk -device /dev/fd0 version_of_kernel
ps. version_of_kernel is for example 2.4.18.27-8.0
10. use "logout" to quit the prompt and you can restart; don't forget that there's still the boot floppy in the drive...
That's bout it, hope this helps someone.