Description of problem:

As you can see on the following log:

# sudo yum update kernel kmod-nvidia-96xx
Setting up Update Process
Resolving Dependencies
--> Running transaction check
--> Processing Dependency: kernel-x86_64 = 2.6.23.1-49.fc8 for package:
kmod-nvidia-96xx-2.6.23.1-49.fc8
---> Package kmod-nvidia-96xx.x86_64 0:96.43.01-18.lvn8 set to be updated
--> Processing Dependency: kmod-nvidia-96xx-2.6.23.8-63.fc8 for package:
kmod-nvidia-96xx
---> Package kernel.x86_64 0:2.6.23.8-63.fc8 set to be updated
--> Running transaction check
--> Processing Dependency: kernel-x86_64 = 2.6.23.1-49.fc8 for package:
kmod-nvidia-96xx-2.6.23.1-49.fc8
---> Package kmod-nvidia-96xx-2.6.23.8-63.fc8.x86_64 0:96.43.01-18.lvn8 set to
be updated
--> Finished Dependency Resolution
--> Running transaction check
---> Package kmod-nvidia-96xx.x86_64 0:96.43.01-18.lvn8 set to be updated
---> Package kernel.x86_64 0:2.6.23.8-63.fc8 set to be installed
---> Package kmod-nvidia-96xx-2.6.23.8-63.fc8.x86_64 0:96.43.01-18.lvn8 set to
be updated
--> Processing Dependency: kernel-x86_64 = 2.6.23.1-49.fc8 for package:
kmod-nvidia-96xx-2.6.23.1-49.fc8
---> Package kernel.x86_64 0:2.6.23.1-42.fc8 set to be erased
--> Finished Dependency Resolution
Error: Missing Dependency: kernel-x86_64 = 2.6.23.1-49.fc8 is needed by package
kmod-nvidia-96xx-2.6.23.1-49.fc8

On the system there are two kernels installed with the same version but
different rpm release number:
kernel-devel-2.6.23.1-49.fc8
kernel-devel-2.6.23.1-42.fc8

Removing kernel-devel-2.6.23.1-42.fc8 should not break the dependency with
kmod-nvidia.

Manual update with 'rpm' works fine.

Version-Release number of selected component (if applicable): yum-3.2.7-1.fc8