I've had a couple of machines where LILO has not had a problem with a Win-2k OS running in an extended partition. So long as you install Win2K first, Lilo should see the Windows partition and set it up as a boot option. Granted, I use Mandrake, not Redhat, but I assume it should be much of a muchness.
I would use Fdisk to create two partitions (one primary, one extended), each at 15 gig, using FAT32. Then boot from the Win2k CD, and install into the extended partiton. You should also be gicven the oportunity to convert that partition to NTFS durring the install. Once win2k is up and running, use the Administrative tools to whack the (empty) primary partiton and then boot from the RedHat CD and install into that open space at the start of the Drive. The various partitions that Linux creates should be invisible to Win2k |