Setting up initramfs-tools (0.88) ...
update-initramfs: Generating /boot/initrd.img-2.6.18-4-k7
ERROR lilo fails for new /boot/initrd.img-2.6.18-4-k7:

Cannot proceed. Maybe you need to add this to your lilo.conf:
        disk=/dev/sdb inaccessible
(real error shown below)
Fatal: VolumeID read error: sector 0 of /dev/sdb not readable