I cannot say for sure but I think something is wrong with either up2date or
development.
Up2date says there are no new packages when there clearly are (for example
kernel-2.6.14-1.1682_FC5.i686.rpm). And kernel-2.6.14-1.1674_FC5.i686.rpm is
there as well. I have never seen two kernels in the repository at the same
time before. Is this a new policy ?

Channel used by up2date was: repomd channel development from
http://download.fedora.redhat.com/pub/fedora/linux/core/development/i386/

Should I run a rpm --rebuilddb ?