As it works today to do a network install with Anaconda both of the
/RedHat/RPMS/ directories from CD1 and CD2 must be combinded into a single
directory and made available for the install.

This sucks because it requires copying the packages to the install server
instead of being able to loop mount the ISO image into the install source
tree. (For example into /var/ftp/pub/RedHat71/cdrom1/ and
/var/ftp/pub/RedHat71/cdrom2/)

Instead of assuming that all files are in the same tree Anaconda should
when installing a file:

Check the existing source path for the next file. 
Check one dir back under an expected name. (ie: if installing from
ftp://source.server.com/pub/RedHat/cdrom1/ the installer should check
../cdrom2/)

If either of these two checks turn up the expected file the installer
should continue assuming all files reside in the newly found path. In the
event that no file was found at the expected location or in the assumed new
location the installer should prompt the user for a new path to the source
file.

Using this method you would still have the advantage of being able to start
and install and walk away from the box either by merging the /RedHat/RPMS/
directories into one source tree or by arranging the source tree in a
predfined method such as mounting cds under /cdrom1, /cdrom2, etc.