That is a rather old kernel, you will constantly run into problems because of that. Since it is a new install, is there any reason that you need to have this version of Red Hat? If you need RHEL, I would suggest installing the latest version of
CentOS. It is compiled from the REHL source, with all of the RHEL branding removed. The latest being version 5.1
You should then upgrade the kernel using the CentOS repositories. The upgraded kernels have the word "plus" in the title, these have many things enabled that the default kernel doesn't.
As far as versions, you have the 32-bit installed. It is OK to install i386 programs into an i686 version, if an i686 version is not available. You should not try to install any 64-bit (x86_64) versions of anything.
For ndiswrapper, you will have to compile it from source. I don't know if it is on the RHEL installation disk, but you could look for it.