I clicked on the CD-ROM icon (I'd booted with the CD already in, so gnorpm wasn't running). Navigated to the RPMS directory, clicked on an RPM, right-clicked and selected install. Nothing happened. Same with upgrade. Same with several different RPMs.
This was with a GNOME workstation installation by the way.
Were you logged in as root or as a regular user?
As root I think, yes. It seems to work in with the current tree though.
If it works for you, that's good enough for me! :)