If you are using VMware then first make the redhat iso connected to the guest. On the other hand if you have the dvd just insert it to your dvd drive.
Log in as root
mkdir /mnt/dvd/
mount /dev/cdrom /mnt/dvd/
cd /mnt
find /mnt -iname 'createrepo*'
rpm -ivh /mnt/dvd/Server/createrepo-0.4.11-3.el5.noarch.rpm
createrepo .
cat > /etc/yum.repos.d/dvdiso.repo <<EOF
[MailRepo]
name=MailRepo
baseurl=file:///mnt/
enabled=1
gpgcheck=0
EOF
Log in as root
mkdir /mnt/dvd/
mount /dev/cdrom /mnt/dvd/
cd /mnt
find /mnt -iname 'createrepo*'
rpm -ivh /mnt/dvd/Server/createrepo-0.4.11-3.el5.noarch.rpm
createrepo .
cat > /etc/yum.repos.d/dvdiso.repo <<EOF
[MailRepo]
name=MailRepo
baseurl=file:///mnt/
enabled=1
gpgcheck=0
EOF
# yum clean all
# yum list
# yum install -y rpmname.rpm
Find the video of this here
Hope this helps
Thanks
Subhajit