source - remote serial console howto
get a null-modem cable

using 19200 and COM1

1. compile kernel
with support for virtual console + serial + serial console

2. set lilo
message=/boot/bootmess.txt
        prompt
        timeout=10
        serial=0,19200n8

3. set kernel
image=/vmlinuz
        label=Linux
        read-only
#       restricted
#       alias=1
        append="console=tty0 console=ttyS0,19200n8"

4. configure getty in /etc/inittab
T0:123:respawn:/sbin/getty -L ttyS0 19200 vt102

5. setserial (optional)
turn off irq sharing with COM1
setserial /dev/ttyS2 uart none port 0x0 irq 0
(debian sarge/testing) copy /usr/share/doc/setserial/serial.conf to /etc/serial.conf and edit

6. set terminal clients to 19200n8
19200 baud
8 bit
parity none
stop bits 1
hardware control flow