Lilo Issues

I have my Slackware10.1 installed now, but I am having troubles with lilo. It is 8 gigs win2k, a gig for swap and 23 gigs /root. From all read there is really no need for /usr and and /home, maybe I am wrong, if so, please feel free to point it out to me. Anyways, I would get lilo errors when trying to install it to the MBR. So I read on Google about it failing when win was over the 1024 cylinder limit. I rezized the patrition to 8 gigs, it was 12. Now with patition magic I see nothing wrong with the 1024 limit. I tried a fresh slack install and when I got to lilo it wil not add a Linux boot. I am sure it is something simple so I am hoping I can get some help here. Also, running /sbin/lilo gives the error: Partition 3 on /deb/hdb is not marked active, can that be the trouble?. I never had trouble before with lilo, and cannot understand why I am now. do I have to shrink win2k smaller or is it something quite easy fix.

Thanks in Advance...