Actually you're more likely to get LI when that's the case. Not just the L like he's/she's getting. More than likely I say, not impossible though.
He/she only has an 8GB drive and my guess would be that the kernel is not resideing above the 1023rd cylinder, though, again, it's not impossible. It's certainly possible if the user is using normal instead of LBA though.
Lastly, he/she using RH 7. I have't used it, but I would think that they'd include the latest version of LILO in that release and then the 1024 problem is solved. 🙂