You are attempting to install an initrd kernel image (version 2.6.8-2-386)
This will not work unless you have configured your boot loader to use
initrd. (An initrd image is a kernel image that expects to use an INITial
Ram Disk to mount a minimal root file system into RAM and use that for
booting).
As a reminder, in order to configure LILO, you need
to add an 'initrd=/initrd.img' to the image=/vmlinuz
stanza of your /etc/lilo.conf
I repeat, You need to configure your boot loader -- please read your
bootloader documentation for details on how to add initrd images.