The upgraded rsync 3.0.6 in RHEL 5.7 is mixing a bug fix for the --fake-super option. See RH Bugzilla 542679 for the info and patch (that has been in Fedora for a long time now).
Thanks for report, as this option was added in 3.0.0, it is not a regression caused by the rebase to rsync-3.0.6 - so RHEL-5 customers probably don't rely on this option. Anyway - keeping this bugzilla opened so it could be fixed eventually in next rsync update.
This request was evaluated by Red Hat Product Management for
inclusion in the current release of Red Hat Enterprise Linux.
Because the affected component is not scheduled to be updated in the
current release, Red Hat is unfortunately unable to address this
request at this time. Red Hat invites you to ask your support
representative to propose this request, if appropriate and relevant,
in the next release of Red Hat Enterprise Linux.
Created attachment 531621 [details]
Permissions patch with updated spec for RHEL-5 rsync
This Bugzilla has been reviewed by Red Hat and is not planned on being
addressed in Red Hat Enterprise Linux 5, and therefore will be closed.
If this bug is critical to production systems, please contact your Red
Hat support representative and provide sufficient business
justification. Issue is already fixed in RHEL-6/7.