How To Create Your Own Yum Repository in Moblin

I received a question from an email on how to create your own yum repository.
I am basing it on Moblin/Meego, but should mostly work on Fedora/RedHat too.
I am assuming that you have already installed the development tools of Moblin in your installed Moblin distribution by using this command:
sudo yum groupinstall “Development Tools”
To start, we install [...]