Next we make a kernel. I presume you've done this before, so I'll be brief.
It is easier to install lilo if the kernel
it is meant to boot is already there. Go back to the target usr/src
directory, and unpack the linux kernel source there. Enter the linux
source tree (cd linux) and configure the kernel
using your favourite method, for example make menuconfig.
You can make life slightly easier for yourself by configuring
a kernel without modules. If you configure any modules, then you
will have to edit the Makefile, find INSTALL_MOD_PATH
and set it to /mnt/target.
Now you can make dep, make bzImage, and if you configured
modules: make modules, make modules_install. Copy
the kernel arch/i386/boot/bzImage and the system map System.map
to the target boot directory /mnt/target/boot, and we are ready
to install lilo.