In order to being able to boot from this partition, we need to update our /etc/lilo.conf file. Add the following lines to lilo.conf:
image=/boot/lfskernel
label=lfs
root=<partition>
read-only
<partition> must be replaced by your partition's designation (which would be /dev/hda5 in my case).
Now update the boot loader by running:
root:~# lilo