To give parameters to the kernel, you can press e at the boot menu. This provides you with the opportunity to edit (by again pressing e) either the name of the kernel to load or the parameters passed to it. When you're finished editing, press <enter> then b to boot with your changes.

A significant difference between LILO and GRUB that bears mentioning is that GRUB does not need to re-install its boot loader each time that the configuration changes, or a new kernel is installed. This is because GRUB understands the Linux filesystem, whereas LILO just stores the absolute disk location of the kernel to load. This single fact about GRUB alleviates the frustration system administrators feel when they forget to type lilo after installing a new kernel!