I have never even heard of this, seems like a dumb way of trying to run multiple PHP versions and make it easy to switch between them instead of just modifying it yourself.
It more than likely upgraded your local version of PHP, but not the module associated with apache.
Take a look at this yum output:
yum info php
Loaded plugins: rhnplugin, security
This system is not registered with RHN.
RHN support will be disabled.
Name : php
Arch : x86_64
Version : 5.1.6
Release : 23.el5
Size : 3.0 M
Repo : installed
Summary : The PHP HTML-embedded scripting language. (PHP: Hypertext Preprocessor)
URL : http://www.php.net/
License : The PHP License v3.01
Description: PHP is an HTML-embedded scripting language. PHP attempts to make it easy for developers to write dynamically generated webpages. PHP
: also offers built-in database integration for several commercial and non-commercial database management systems, so writing a
: database-enabled webpage with PHP is fairly simple. The most common use of PHP coding is probably as a replacement for CGI scripts.
: The php package contains the module which adds support for the PHP language to Apache HTTP Server.
Notice that bold line there that says the package provides the module for php.
ls -al /usr/lib64/httpd/modules/ | grep -i php
-rwxr-xr-x 1 root root 3193672 Nov 12 2008 libphp5.so
I bet if you do a "php -v" from the command line you will see the new version.
As far as helping you with that third party piece of code, I have never used it.
Just do a "yum upgrade php"