RHEL5 Local YUM Repo

Create folder for repo.
# mkdir /var/install/RHEL5
Mount media with RHEL5.
# mount /dev/cdrom /media
Copy the content of the Server folder including repodata folder.
# cp -pr /media/RHEL_5xxx/Server/ /var/install/RHEL5
Create repo file for your new local repo folder. Make sure the file:/// path is correct and repo is enabled.
# vi /etc/yum.repos.d/rhel-local.repo
   [rhel-local]
   name=RHEL5 $releaserver - $basearch - Local Base
   baseurl=file:///var/install/RHEL5
   enabled=1
   gpgcheck=0
Check repo.
# yum repolist all