I found the following link VERY useful when I was setting up my Red Hat linux box last night. This guide is written for RH 6.2 but it worked fine for my 7.2 distro with a few changes (ie. inetd -> xinetd and others).
Securing and Optimizing Linux - RedHat a hands on guide
The purpose of this guide is to create a streamlined and secure server. My install was on a p75, 40 Mb RAM and a 1 Gb HD and it worked fine. Very easy to follow and I learned a lot from doing it.
Anyways, hope you enjoy!