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/usr/bin/vim is linked with libX11, and if the DISPLAY variable is set, attempts to open the display. Add --without-x to the second configure invocation in the build stanza to fix it.
Bug 5484 has been closed because the vim package has been superceded by later vim's that do not have this problem. The version of Red Hat is no longer supported by Red Hat and users should upgrade to a more recent version (7.3/8.0 as of this time.)