I got a mixed bag of answers but heres what happened
 
I was using a lower case m instead of a upper case M for the ram size
 
Thus 
 
at lilo prompt:
linux mem=128m  should be -> linux mem=128M
 
or
 
in /etc/lilo.conf
 
append = mem=128m should be -> append mem=128M
 
sorry to try everyone up on such a stupid mistake.
 
thanks all
 
Stephan
 
 

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