arch boot 11/09/06 
using: current-0.7.2-20061104-i686.iso 2006-11-04
hda6 is on extended partition hda2; hda5,hda6,hda7,hda8 on extended partition hda2
running hook filesystems  
loading root filesystem module -e   
attempting to create root device '306'
/bin/mknod "/dev/hda6" b 3 6  ext3   
Init ramfs completed - control passing to kinit   
IP-Config: no device to configure
kinit: cannot open root device hda(3,6)   
kinit: init not found   
kernel panic - not syncing   
Attempting to kill init
tried these fix's per brain0: 
in lilo: append="root=/dev/XYZ"  or rootfstype=ext3 from lilo command line  
result: same msg as above
lilo.conf created by arch setup:
image = /boot/vmlinuz26
root = /dev/hda6
label = arch26
#  append="root=/dev/hda6 rootfstype=ext3"   does not work at lilo boot prompt or in lilo.conf
#  append="/dev/hda6"   this does not work at lilo boot prompt or in lilo.conf
initrd = /boot/kernel26.img
read-only

lilo.conf suggested by aarcane:
image = /boot/vmlinuz26
root = /dev/hda4
label = arch26
append="root=/dev/hda6"
#  append="root=/dev/hda6 rootfstype=ext3"   does not work at lilo boot prompt or in lilo.conf
#  append="/dev/hda6"   this does not work at lilo boot prompt or in lilo.conf
initrd = /boot/kernel26.img
read-only
this lilo.conf creates same kernel panic listed above
brain0 suggests: mount hda6 and setup lilo to mount it at /some/where and tell it /some/where/boot/
have not tried brain0's last suggestion yet