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Obviously, 128 would not be correct in your case, so change that and reboot. Have a rescue disk handy as this can go wrong. If so, your machine won't boot, hence the need for a rescue disk.
Lower the value in that case and reboot again.
LILO: Linux mem=128M
or something like that; and if it doesn't load just run the usual LILO, nothing was changed. When you're sure modify lilo.conf.
Have you checked the bios is finding the memory..? It should show it when it boots up. Also, have you checked to see if you need any drivers for your motherboard?