XFree86-XF86Setup-3.3.6-20 doesn't have a dependency on XFree86-VGA16, only one on "Xserver". This dependency can be satisfied by a non-VGA16 X server, but XF86Setup specifically requires the VGA16 server. This bug wasn't present in version 3.3.5-3 of this package (distributed with Red Hat Linux 6.1).
*** This bug has been marked as a duplicate of 10686 ***
This defect is closed (since it's a duplicate)