RH uses the 'nv' driver by defualt, but it only displays in 2D. So, yes you will upgrade you display by installing a new set of drivers (nvidia's official).
Generally speaking, there are three methods:
Pros: Easy, fast.
Cons: You must find the exact version for your system (a lot of people find it difficult to choose appropiately). Only works with RPM based distros (Red Hat, Mandrake, SuSe).
Pros: Works with any kernel configuration. Your drivers are tailored to fit your configuration.
Cons: Only works with RPM base distros. Takes a few more steps to install. You may need to install additional packages to rebuild the drivers successfully.
Pros: Works with any distro, regardless of your kernel configuration (great for beta testers and Debian gurus).
Cons: You need the kernel-source and the 'make' libraries (and some other libraries to install those in the first place).
Another Pro: Learning how to install by TAR files is very useful, since it's a universal install tool.
Use the source, Tux.