Hello...
Well the messages appear on both tty1 where the text install is taking place, and on tty3 where the "INFO, WARNING, CRITICAL" messages are displayed. I will try changing the perms within the entire tree...though, an ftp/http access would be read only anyways, maybe that is the issue. I will check further with perms...
Here is the kickstart file. As you can see it is VERY basic.
#################################################
# Kickstart file automatically generated by anaconda.
reboot
text
install
#cdrom
#nfs --server=10.10.1.98 --dir=/var/www/html/rhel-5.3-dvd
url --url
http://10.10.1.98/pub/rhel-5.3-dvd
#url --url
ftp://anonymous:@10.10.1.98/pub/rhel-5.3-dvd
key 33250c9e3761450c
lang en_US.UTF-8
keyboard us
network --device eth0 --bootproto dhcp
rootpw somepasswd
#firewall --enabled --port=22:tcp
firewall --disabled
authconfig --enableshadow --enablemd5
selinux --disabled
timezone America/New_York
bootloader --location=mbr --driveorder=sda --append="rhgb quiet"
# The following is the partition information you requested
# Note that any partitions you deleted are not expressed
# here so unless you clear all partitions first, this is
# not guaranteed to work
clearpart --all --drives=sda --initlabel
part /boot --fstype ext3 --size=128 --asprimary
part swap --size=1024 --asprimary
part / --fstype ext3 --size=1 --grow --asprimary
part /tmp --fstype ext3 --size 2048
part /var --fstype ext3 --size 3072
%packages
@admin-tools
@editors
@system-tools
@dialup
@core
@base
@legacy-software-support
@smb-server
emacs
audit
kexec-tools
fipscheck
device-mapper-multipath
xterm
##########################################
Thanks...