> image =/boot/vmlinuz-2.4.20
> optional  #automatically added by patch_lilo_conf

Does that image "boot/vmlinuz-2.4.20" exist?

ls -l boot/vmlinuz-2.4.20

You need a "root" for the Linux image.

> label = evil
> root  =/dev/hda5
> vga   =788

You canmove that to above.

> read-only
> initrd =/boot/initrd-2.4.20

The read-only and the initrd should go with the Linux image.

You need a "other" for the Windows.

What is the boot?

What is the root for your first (Linux) image?

Maybe try something like:

boot=/dev/hda # your root partition
image=/boot/vmlinuz-2.4.20
  label=Linux
  initrd =/boot/initrd-2.4.20
  root=/dev/hda5
  read-only  # mount root read-only
other=/dev/hda1
  label=Evil

Have a look at the mini-howtos. There are some on dual booting and about
Lilo.

(If you need more examples, I can provide some from my old dual boot
systems -- they no longer have Windows anymore.)

Good luck,

   Jeremy C. Reed
   http://bsd.reedmedia.net/