yes you could use the XP bootloader.
to do that you let the XP bootloader and lilo work together.
for me this works well.
quick sketch what i do, write LILO to a floppy, make a "image" of the floppy-mbr put that image in XP's C:\ and edit BOOT.INI mine looks like this.

[boot loader]
timeout=2
default=multi(0)disk(0)rdisk(0)partition(1)\WINDOW S
[operating systems]
C:\linux.ipl="LINUX"
multi(0)disk(0)rdisk(0)partition(1)\WINDOWS="Micro soft Windows XP Home Edition" /fastdetect
a few more details.

1) make lilo write to floppy, have this line in lilo.conf:
Code:
boot=/dev/fd0
or give floppy as an argument to lilo
Code:
lilo -b /dev/fd0
2) make a image of the floppy-mbr: and put it in C:\
Code:
dd if=/dev/fd0 of=/mnt/C/linux.ipl bs=512 count=1
3) Modifiy c:\boot.ini -- add a line with:
Code:
C:\linux.ipl="Linux"
repeat 1) and 2) every time you run LILO, rename the old linux.ipl first. good to have just in case something breaks.
you can now have several linuxes booted withthat same lilo if you wish. or even win98 and XP.
happy booting