Usually, when a yum client can see a repo but not the contents of that repo, it means one of two things: you don't have the repo metadata properly created; you don't have permissions set appropriately on your repo files. Can't tell from your repo definition as to whether "local.server" is supposed to mean "some server on the local network" or if you actually mean to reference a location on the same system that the yum-client is running on (in which case, you're probably better using "file://" than "http://").

Any way, need more info on what steps you used to create your repos: how did you put the files in place, what utilities did you use to create your repo data-structures, what method are you using to publish your repo, etc. If the contents should be the identical, then I'd probably:

1. Set up one repo, get it working (normally, I'd suggest Satellite or SpaceWalk, but it looks like you're only trying to host one file and those two options would be massive overkill).
2. Use rsync to duplicate the repo from one server to another (rsync might be a bit more overhead than you really want, but it's pretty good for ensuring that not only are your files duped, but so are all the attributes that made them sharable from the original system).
3. If things didn't work as expected on the second server, re-generate the repo data-structures, verify my file/directory permissions, etc and see if that fixes things.

Does your network access control policy permit HTTP from both servers to the repository? Is it possible that one of the two servers is located on a different VLAN, and its network access is being filtered? (You might want to check iptables on both the not working host and the repo, as well.)