It's weird because I have a nearly identical box and setup and I can update the ovzkernel-PAE* just fine but on this box it doesn't work.
I only get this error with the openvz.repo and not others such as Centos-Base.repo
With my other server it works normally:
Setting up Update Process
--> Running transaction check
---> Package ovzkernel-PAE.i686 0:2.6.18-238.12.1.el5.0........
yum exits in the middle
The problem is this VPS seems to be an OpenVZ template from HyperVM. The only way to make it work was to disable i386 packages since this was an x64 kernel. That shouldn't be necessary but it was the only way to make yum stop quitting after the first package or two. I couldn't find any issue by checking the logs either.
echo y|yum install vim-minimal telnet expect jwhois net-tools slocate iptables elinks gawk
I decided on using yum to help me decide even though I normaly use proftpd I decided to see what else I could find.
yum search ftp
Loaded plugins: fastestmirror
Loading mirror speeds from cached hostfile
* rpmforge: ftp-stud.fht-esslingen.de
* base: mirrors.netdna.com
* updates: updates.interworx.info
* addons: yum.singlehop.com
* extras: mirrors.netdna.com