W2k and RH Linux 7 has been one of the easiest dual-boot setups I've done.
All I did was to pre-partition the disk using fdisk (10Gb drive split 4, 3, 3), installed W2k into partition 1, then installed Linux into partition 2.
The remainder of the space I left for file sharing between the O/Ses (not necessary, but a nice touch!).
LILO was installed to the boot sector, but apart from that, no modifications to either installation, just next, next, next...
Jim, does W2k's bootmanager give the option to boot Linux? I've never tried it that way - just curious! ;-)