Thanks to Maarten for prompt reply.
1. Lilo not booting; I can't tell if
 https://bugs.mageia.org/show_bug.cgi?id=5044 
is the same problem; it does concern lilo, but in a raid setting and I wasn't quite clear on what problem was being described there.

2. rpm update failure; Maarten is right, yes is is 
https://bugs.mageia.org/show_bug.cgi?id=4918  
 I'll await beta3


While I'm at it, beta2 has lost the ability for root to log in graphically.  Beta1 was without this on the DVD but upgrades fixed it.  Beta2 does not honor the flag set in /usr/share/config/kdm/kdmrc, where setting AllowRoot to true has for many releases been all that is required to allow a graphical root login.  (useful for system admin, no I never go out on the web as root!)  Intended behaviour or accident?
tonyb