If I understand your post correctly, you have lilo on the mbr (Mandrake) and lilo on the / partition of Kanotix and both of these are active. You should only have one active lilo.
I would disable the Kanotix lilo and configure the Mandrake lilo to boot Kanotix. If you go with this plan, go into the Kanotix lilo.conf and copy the entry to boot the Kanotix partition, you'll need that information (modified) to add to the Mandrake lilo.
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