If you get a response similar to this:
[root@lxprx025 ~]# yum update
Loading "rhnplugin" plugin
Loading "installonlyn" plugin
Setting up Update Process
Setting up repositories
rhel-i386-server-5 100% |=========================| 1.4 kB 00:00
rhel-i386-server-vt-5 100% |=========================| 1.4 kB 00:00
rhn-tools-rhel-i386-serve 100% |=========================| 1.2 kB 00:00
Reading repository metadata in from local files
primary.xml.gz ...