2. I cannot boot from any bootable cdrom, coz i have LILO with knoppix installed in my hdd (I'm posting this from knoppix)
Simply having LILO installed is no reason why you shouldn't be able to boot from a cd-rom.

LILO is only used after your computer has decided that it should attempt to boot from the hard drive.

It is up to the BIOS to decide whether to boot from floppy/CDROM/harddisk/other etc.

You should check your BIOS settings to ensure that "boot from CD" is enabled..