Which partition is the Active one? If want Lilo to be the active boot drive, using fdisk make it the Active partition.
I'm pretty sure it's the active partition, because XP is on hda1 and it's using the mbr on hda. Mandy is on hda7. (i think slack is on hda5, but thats not doing anything to it, in fact, thats not even in the mandy lilo menu).