Using RedHat "up2date".
Edit "sources" file located at:
/etc/sysconfig/rhn/sources
Then run up2date agent.
sources file:
### Originaly first two lines were active. tktim
#yum fedora-core-1
http://fedora.redhat.com/releases/fedora-core-1
#yum updates-released
http://fedora.redhat.com/updates/released/fedora-core-1
#yum updates-testing
http://fedora.redhat.com/updates/testing/fedora-core-1
### tktim added this line for use with CD updates
dir fedora-core-1 /mnt/cdrom1/i386
# or ### = a comment
must start with "dir"
then any label such as "fedora-core-1"
then directory location such as "/mnt/cdrom1/i386"
Change back when done. Comment out lines using # no longer needed and uncomment (remove #) lines needed again.
Once I did above everthing worked perfectly.