That screenshot shows that you're running Fedora Core 2, not Red Hat 9. Going by my previous install of FC2, it boots straight into runlevel 5 (Which should be your GUI). What I suggest is to change your runlevel in /etc/inittab from 5 to 3.
Just use a text editor to change the following text in /etc/inittab
Save, restart and then once your logged in again, try startx.
It's a long shot, but this should make sure that no GUI is running. Just 'ps aux |less' after you reboot to make sure.