How to resolve the problem "installing package ... needs 8KB on the /mnt filesystem " when running "yum update" ?

Issue

Mount installation media as software repository source:

# mount -o loop,ro <installation_media>.iso /mnt

Then using yum to update from local repository as the configuration file under /etc/yum.repos.d/<local_repo>.repo

Error information:

Transaction Check Error:

   installing package filesystem-2.4.0-3.el5.x86_64 needs 8KB on the /mnt filesystem

   installing package httpd-manual-2.2.3-43.el5.x86_64 needs 8KB on the /mnt filesystem
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