up2date troubles

I am running RH7.0 on a Dell server and I am having trouble getting up2date
2.0.5 to run.  I have registered my system but when I run up2date I get the
following:

[root@fileserver tappind]# up2date -l

Retrieving list of all available packages...

Removing installed packages from list of updates...
100.0%
Removing packages marked to skip from list...
100.0%
Getting headers for available packages...
100.0%
Removing packages with files marked to skip from list...
Traceback (innermost last):
   File "/usr/sbin/up2date", line 382, in ?
     main()
   File "/usr/sbin/up2date", line 366, in main
     sys.exit(batchRun(onlyList, pkgNames))
   File "/usr/sbin/up2date", line 138, in batchRun
     updated, skipped = up2date.getUpdatedPackageList(printit, percent)
   File "/usr/share/rhn/up2date/up2date.py", line 894, in
getUpdatedPackageList
     progressCallback)
   File "/usr/share/rhn/up2date/up2date.py", line 851, in
removeSkipFilesPackagesFromList
     if checkModified(h, f_i):
   File "/usr/share/rhn/up2date/up2date.py", line 786, in checkModified
     if installedFileMD5s[j] != md5(fileName):
   File "/usr/share/rhn/up2date/up2date.py", line 220, in md5
     fData = f.read()
IOError: [Errno 21] Is a directory
[root@fileserver tappind]#

I have searched the RH website and ran a Google search with very few
results.  Has any one seen this before?  I have tried to manual upgrade
up2date via rpm's but all I get is endless dependancy errors.

Any first thoughts?

Thanks,

Dan