Either lilo is not building boot.b or it is being erased after emerging lilo. I have created instructions and a sample lilo.conf for Gentoo if this error can be fixed. Thanks Tom Johnson aka Ultanium
Also wanted to mention there is a boot.b file in the / directory, but it is a bad link to boot-menu.b,that file is not found either.
Fixed by Azarah, cxt, and Ultanium 4/6/2002.