Hello,
RHEL3 => 2.4 Kernel
RHEL4 => 2.6 Kernel
They are different beasts and behave differently. With RHEL3 there were a myriad of 'kernel' choices, with AMD being one of them. For RHEL4 there are not so many choices.
You should install the rhel3 i386 kernel or the i686 kernel. Either should work. If you already have the i386 kernel, then boot from it instead of the AMD kernel. If the 'rescue' cdrom worked then the i386 kernel will work.
You will need the appropriate network connection or CD in single user mode to fix this.
Best regards,
Edward