** FIXED **
I found a fix based on a post from NeoZer0 two years ago with the phrase "RHEL 5 issue" near the bottom of this page:
https://github.com/dagwieers/mrepo/issues/29
The wget link NeoZer0 supplied is broken however the following equivalent commands worked on my system:
sudo yum install python-devel
(I found python-devel was already installed)
sudo yum install python-hashlib
(this installed the package
================================================================================
Package Arch Version Repository Size
================================================================================
Installing:
python-hashlib i386 20081119-4.el5 epel 12 k
Transaction Summary
================================================================================
)
Then the 'yum --security check-update' command was fixed:
$ sudo yum --security check-update
Loaded plugins: fastestmirror, security
Loading mirror speeds from cached hostfile
* base: mirror.atlanticmetro.net
* epel: mirror.seas.harvard.edu
* extras: mirrors.advancedhosters.com
* updates: mirror.trouble-free.net
Limiting package lists to security relevant ones
No packages needed, for security, 0 available
$