Not Booting

I am in way over my head here, but maby you can help me.

I have a Compaq Armada E500 P2 366 128M ram. Runs Knoppix off the CD win no major issues. I decided to attempt a hard drive install, lack of expierence with Linux be damned. I partitioned the 6 gig Hard Drive with Partition Magic into a 3 gig Win98 (FAT32), almost 3 gig EXT3 partition and 130 MB Linux swap.

Using the script provided in the FAQ's i got everything copied over to the Linux partition. Now when I boot and LILO comes up it starts to boot then I get the dreded ...

nomce: nomce: No such file or directory
Kernel Panic: Attempted to kill INIT

I have done everything I know how to do (which isn't much)
linux nomce
linux mem=128M
linux mem=64m
linux noaspi

Suggestions, Thanx