Originally Posted by deep27ak

well glad that you fixed your problem but what all you did was suppose to happen automatically.

As soon as you update your kernel a new entry should be visible in grub.conf
And by default /etc/grub.conf and /boot/grub/grub.conf are linked. Any change in either file is reflected on the other one

This was the reason you were asked to contact the support.

Removing kernel could have been dangerous in case there was no old kernel. But as your grub.conf explains you were already having two old versions of kernel so nothing negative happened.
But removing kernel before installing is not advisable at all specially on running servers.

And another thing to be noticed is while updating your kernel you don't need to reboot your machine as the changes take affect without rebooting. But yes if you install a new kernel then you need to reboot your machine with the new kernel. So if you have a red hat support contact them asking for an explanation of such behavior.