Run it in virtual machine ??? hehehe.
There is no need to add users via console
Anand, first do yum update, and then list all available groups with
yum grouplist -v | less
and first install
yum groupinstall "GNOME Desktop Environment"
as suggested, and then any other group/package you want.
to install Midnight Commander, command line file utility, just like old Norton Commander on DOS.
then go to /etc/inittab and set 18th row to read
Navigate with MC and press <F4> to edit the file then <F2> to save it when you done, and <ESC> 2 times to exit the editor. Then reboot and you should be in GNOME. Then you can use Add/Remove Software for packages and all other Administration options from GUI.