if you boot with lilo try to type, if the_name is the word you type to boot linux : the_name single
this will make your machine to boot in single mode after what rename : /etc/init.d/lpd ---> /etc/init.d/lpd_old try to reboot and see if all works after what if the answer is yes this indicate that your lpd is broken so reinstall it else move lpd_old to lpd