Linux 2.6.0

Finally got it working! Steve Kemp gave me the solution to my problem:

image=/vmlinuz
      label=Linux
      read-only
      initrd=/initrd.img
      append="root=/dev/hda2"

After putting this in Lilo, loading mousedev and psmouse modules made the /dev/psaux mouse (and the X) work:

> uname -r
2.6.0-1-686