I will be patching the 25 physical RHEL 4 servers. I have checked and the majority are 4.7 with one 4.5 and one 4.8 release.
I propose the following in this order and since I'm no expert (SME) with Linux...
Can someone tell me if this is correct?

1. rpm -qa kernel\* # to get installed kernel versions for baseline

2. up2date -l # Lists what is available...

3. up2date -u # install updates

4. up2date-config # hit 5 and change to yes for enabling rollbacks

5. up2date -f kernel<name> # this is to get around bug that does not download kernel updates

Nope...mainly because RHEL4 is no longer supported as of February 2012, and the repositories won't work. You should be able to call Red Hat support, since you're paying for RHEL, and get them to help you.

The latest is 6.4...even *IF* the up2date command still worked to update old servers, you'd not be able to jump major versions. Contact RHEL support.

I'm sorry that I was not clear. My goal is to keep to the release, but to bring up to the latest level for that release ie. my 4.7 has not been patched since 2008.

You were very clear, as was I. RHEL4 WILL NOT update at all any longer, EVER. It is end-of-life (that means, unsupported). Again, if you want more details, call Red Hat support.