Welcome to LQ!
I suggest you read the LQ Rules and "How to ask questions the smart way" which can be found on the Forum home page.
Regarding your question/s:
Need some step by step help as im totally new to this. Thanks in advance
This is not how LQ works - here we believe in helping people to educate themselves; not to give step by step guides to doing things. So by all means attempt to solve your problem and at each stumbling block we will help you as best we can.
Regarding the yum issue that you're experiencing; I have 2 comments/suspicions:
1. You should not have downloaded and installed version 3.2.27 of yum - the latest supported version of yum for RHEL is version 3.2.22. Installing an unsupported package can have implications to your support agreement with Red Hat.
2. Based on your output, it appears that some of the dependencies for yum are missing - take a look at this for a user who had a similar experience: http://old.nabble.com/yum-error-Impo...d18624933.html