By the looks of things, you may also want to use a rescue disc, and check your lilo for the correct root device, or other lilo options.

Since its asking you to enter directly to shell, that looks like single-user mode.

If you have upgraded the kernel, try booting back to the last working kernel, or the original kernel. If this fails as well, means you prolly have to check the lilo options. Its very unlikely for a filesystem to die off.