When I create dual-boot systems on friends computers I will usually install partition magic on Windows and use it to create my Linux partitions (root/swap) and then boot off of a Linux CD to install. Also Norton can come in handy to move Windows to the beginning of your drive by going into the 'speed disk' properties and selecting unfragment free space. Sometimes little tid bits can get stuck at the end of the drive making it difficult to partition.
If you are worried about using Lilo then you can use Loadlin.exe which should be on your Linux cd under dos utils. I make one of those --Keen-- startup screens in windows that will default a selection in so many seconds. Which is handy and doesn't really get in the way like Lilo can (in my opinion). Just make sure you make a boot disk or two so that you can load Linux and copy the Kernel over to a directory on windows. You may want to get a book or do more research on the net using Loadlin.exe as a boot method because using a boot disk will work but it sure is slow.

...G...