For Red Hat Enterprise Linux 4
Copy the contents of the disk /media/cdrom/Redhat/RPMS to a directory of your choice.
In /etc/sysconfig/rhn/sources, comment out the following line:
This line needs to be commented out otherwise up2date will keep on looking for information using the Red Hat Network first.
Next, in the same file, create a line like the following:
dir mydvdrepo /path/to/copied/RPMS
Now you can use up2date to install the application of your choice.
Note: The CD/DVD must be mounted and available in the directory /media/cdrom/ and the path must point to the directory containing the RPMS.