Lilo, unlike grub, does not understand filesystems, so it hard-codes kernel position as a lba block number... thus if you change or move your kernel you'll have to reinstall lilo on mbr AND on floppy.
However with grub you can edit your config at boot time, pressing the 'e' key, or giving interactive commands with 'c'.
You should have a look at grub documentation from
www.gnu.org/software/grub first. However remember you can use 'help command' from grub command prompt to get a short help on command, or press tab to have a list of possibilities.
PS: I'm not sure, but I think changes made at boot time are not persistent, so once in your system, edit grub.conf (used to be named menu.lst)