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Due to the removal of caching-nameserver-7.3-3_EL3.noarch.rpm from the 3.4 i386, network installs (using boot.iso from within the os tree) will fail if the caching-nameserver package is included at package selection time.
If you wish to use network installs and want to install caching-nameserver, first perform a network install excluding the caching-nameserver. Then install caching name server via with yum.
yum install caching-nameserver
bugzilla can be used to track this issue if you so desire. https://bugzilla.caosity.org/show_bug.cgi?id=751
Thanks,
.dn