Installing multiple packages fails if one package is missing in RHEL5.4

Issue

RHEL5.4 introduced a new version of yum which has a new behavior. It reacts differently to an update command when the package is not in a repository. In all previous version of yum one could run the following command:

#yum update <package1> <package2> <package3>

If for example <package2> did not exist in the repository yum would not error out and just offer to update package1 and package2.

yum-3.2.22-20.el5 has changed that behavior, it will now error out with a message of:

Error: No Package Matching <name of package not in repo>.