Downgrading to -128.7.1 helped working that serious problem around.
To prevent this kernel to be installed, add the following lines to /etc/yum.conf:
# We know this kernel causes a crash
exclude=kernel-2.6.18-164.el5 kernel-headers-2.6.18-164.el5
Afterwards, you can perform a "yum update" as usual.
More info:
http://bugs.centos.org/view.php?id=3846
https://bugzilla.redhat.com/show_bug.cgi?id=494927
http://forum.r1soft.com/showthread.php?t=1158