The fuse module is built by dkms. Make sure you have the kernel devel package that *matches* your running kernel. What is the output of:
uname -mr
and
rpm -qa kernel* | sort
[root@localhost ~]# uname -mr 2.6.18-128.el5 i686
[root@localhost ~]# rpm -qa kernel* | sort kernel-2.6.18-128.el5 kernel-devel-2.6.18-128.1.14.el5 kernel-headers-2.6.18-128.1.14.el5
OK, what next?