Different distros handle it in different ways, and linux being linux, you can set it up to handle updates on it's own, or to do them manually yourself. I'm an ubuntu guy, so I know how apt handles it, but redhat is a little different. I did find a few links though.....
http://www.ducea.com/2006/08/11/rhel...te-4-released/
http://www.ducea.com/2006/09/11/yum-...-repositories/
http://www.ducea.com/2006/10/13/yum-...ystem-updates/
Are you paying Redhat for support ? My guess is no, or you'd know this stuff already. The reason I ask is that I don't know what the advantage of using RHEL is if you aren't paying them for support. They are expensive I know, but worth it if you have important data to protect. They are one of the good guys, and worth the money for businesses. If you are running your own server though, I would think another distro might better suit you. Something community supported. Also, whatever distro you go with, even RHEL, you would be wise to use the latest version, if for no other reason than uptodate security patches. I'm sure plenty of people here have experience with different distros, and would recommend something that has worked for them....if you are a little new to linux, I think ubuntu-server does the most hand holding for you....if you are going to stay with RHEL I'd get some kind of auto update feature set up, unless you have the skills and time to update manually, with a few thousand rpm's.
Good luck....
David