The statndard installation results in a system without a working ftp service, most likly because no ftp daemon is supplied, and inetd.conf points to a non-existant in.ftpd daemon. It is necessary to install wu.ftpd and edit inetd.conf accordingly to get ftp services working.
RedHat 5.2 includes wu-ftpd-2.4.2b18-2.i386.rpm which has /usr/sbin/in.ftpd in it. If you want to have various servers (such as FTP server) installed, you should not choose standard installation
The problem is fixed by installing the appropiate packages on the system (in this case wu-ftpd will provide the necessary ftp server)