I don't think it includes the metadata (the FC3 DVD didn't anyway). However, that can be fixed fairly easily: if you've loopback-mounted the DVD at (say) /srv/software/fc4/dvd then running "createrepo" in the /srv/software/fc4 directory should create a suitable set of metadata for using with yum.
Does it create it "out of tree"? The original yum put the headers in a subdirectory of the RPMS directory, making it unsuitable for retrofitting onto read-only filesystems.
