booting latest 64 bit kernel

[Richard B. Pyne]

Can someone please explain to me how to get a 64 bit system bootable 
with the latest (2.6.39.4) kernel?

lilo says: "Fatal: Setup length exceeds 31 maximum; kernel setup will 
overwrite boot loader" and grub says it can't build on a 64 bit system.

I have configured the kernel with xz compression and removed almost 
everything possible from the kernel and still cannot get it small enough 
to boot with lilo.