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→Alternative: use precreated template cache
yum install vztmpl-centos-4
[Unverified note] : After creating a new OSTemplate cache from a Container (on which vzyum worked) based on centos4-i386-default.tar.gz, vzyum failed to work (showing "No such OS template: install"). Here is the solution I worked out :
The new OSTemplate should be named "centos4-i386-[ASINGLEWORD].tar.gz", and in /vz/template/centos/4/i386/config you should copy the default.conf to [ASINGLEWORD].conf. vzyum then works (for me!). I have tried to verify this by creating templates with [MULTIPLEWORDS], which fail, and by creating templates without a corresponding [SINGLEWORLD].conf file, which also fail. Good luck.
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