We have set up local yum mirrors for Fedora, and updates are fast as heck, except that Yum seems to hang intermittantly. Sometimes it stops right in the middle of copying over an rpm; then it just sits on the process bar and never seems to recover. We don't seem to see this problem when using mirrors from the Internet, although these are much slower, of course.
Could this be a problem with trying to push too much data through the local apache server? It doesn't show any errors.
Are you running yum in a terminal window over ssh? I'm seeing a similar issue when running yum on my home machine from work using ssh, though it usually hangs when processing the metadata rather than with the RPMs themselves.
Paul.