I've tested the package in my PPA and confirmed that it works both if lilo-installer/skip=true is set in the preseed file, and that it still works if that option is not set and you just select LILO from the ubuntu-installer menu.
I've tested the package in my PPA and confirmed that it works both if lilo-installer/ skip=true is set in the preseed file, and that it still works if that option is not set and you just select LILO from the ubuntu-installer menu.