Thanks for the advice.
It was dawning on me about chain.b. I had lilo set up as dual boot untill this problem when I re-ran liloconfig and when with the default linux only ability.
I think my laptop bios can handle the USB floppy because once I left a floppy inside during startup and it tried to boot from it (my bios was set to boot from 1st removable drive). However, I would not put my morgage on it so I will look into the ISOLINUX cd on the slack site which you recommend.
Prior to this I was considering putting lilo on the superblock of / (hda2), I was hoping that I would have to only put the lilo.config on my floppy.
I only need this as a one of because my windows XP needs reinstalling. XP repair is a joke and so is the fact that it purges the MBR when it reinstalls.