There are several special rules for partitioning the hard drive for use with MILO. The first is that the hard disk should have a DOS partition table on it. This is a requirement of the ARC or AlphaBIOS consoles, in setting up OS Boot Selections.
Second, there should be an ~2 MB FAT partition at the beginning of the drive where MILO will be installed. If this partition doesn't already have MILO installed into it, it is very advantageous to have the partition initialized with the DOS filesystem and then automatically mounted by the installer. Near the end of the install, MILO can then be transferred from the diskette into that partition with some simple commands. See the end of the next section for details.
And lastly, if you are using an older MILO that cannot boot a kernel from a large (greater than 2GB) partition, a small ~20 MB partition to hold the /boot directory wherein kernels and initial RAMdisk images will be installed.
The remainder of the disk can be partitioned as desired, but realize that a typical installation will need 1.5 to 2 GB of space. An "everything" install will amount to nearly 4 GB of stuff.