I can SSH in. I have rebooted prior to posting this thread. Still unable to login from the console.

If I've been 0wn3d it seems harmless as there is no network activity and the machine is over 99% idle. So, I am pretty sure this is not the case. I am going to end up re-doing the server this weekend (oh, did I mention it is a live web/email server). Maybe I will check out RH7.2. Thanks.