HP Proliant ML350 G3 - problems with lilo/grub

["Mikael Ljungberg, technordic" <mikael@technordic.com>]

I have an HP Proliant ML350 G3 with HP Smart Array SCSI controller. At 
first
I couldn't install due to the drivers of HP Smart Array missing, but 
Gaudenz
Steinlin helped me out a little guiding me to the installer at:

http://cdimage.debian.org/pub/cdimage-testing/sarge_d-i/i386/tc1/sarge-i386-businesscard.iso.

Now, the problem I have at this time is that even though the install 
itself works
beautifully, there comes the time when a bootloader must be installed. 
Grub can't
locate the disk but lilo can. (The disk, by the way, should be located at
/dev/cciss/c0d0.) So I went with lilo. Went like a charm until I rebooted. 
Now, when
lilo starts up I get this:

Lilo 22.2 Loading linux.......
Uncompressing linux......(reboot)

where (reboot) is, of course, my beatiful server rebooting. It keeps doing 
that
over and over again.

Any ideas I might try?