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Our exadata machine have packages from OEL 5.7 update patch. So we some have newer packages installed in system from base OEL 5.7. When we run command yum groupinstall "Gnome Desktop Env." it checks and finds old 5.7 packages for installing. For example freetype package freetype-2.2.1-28.el5_7.2.x86_64 is installed in our system but yum groupinstall looks for freetype-2.2.1-28.el5_5.1.x86_64. Because the installed version is newer the process cannot continue. I think we need to modiy group.xml file from OEL 5.7 repo but we dont know if this is the correct way. What we really need a published OEL 5.7 patch iso file which is currently not available as iso file anywhere.
Sounds like you may need to change the OL channel(s) you're using from ULN. If you use the OL 5u7 channel, you shouldn't have this issue. I strongly discourage any XML file hacking. There are command-line switches that should be able to skip updates that are older than current installed packages, but I think the best thing would be to use the OL 5u7 channel which I expect should fix your problems entirely.
I'd suggest using yum for this; yum is built to query repositories to find the latest version of any given package. Plus, you will want to use yum anyway to update the OS kernel when patching.
Rene Kundersma has blogged about how to do this: https://blogs.oracle.com/XPSONHA/entry/updating_exadata_compute_nodes_using
YUM is not working here. We have newer packages installed in system from base OEL 5.7. When we run command yum groupinstall "Gnome Desktop Env." it checks and finds old 5.7 packages for installing. For example freetype package freetype-2.2.1-28.el5_7.2.x86_64 is installed in our system but yum groupinstall looks for freetype-2.2.1-28.el5_5.1.x86_64.