verified iscsi-initiator-utils-6.2.0.868-0.17 has options for CHAP and the needed prompts show up in anaconda using Snapshot 6.
An advisory has been issued which should help the problem described in this bug report. This report is therefore being closed with a resolution of ERRATA. For more information on therefore solution and/or where to find the updated files, please follow the link below. You may reopen this bug report if the solution does not work for you. http://rhn.redhat.com/errata/RHBA-2009-0103.html