I ran rm -rf lib*, I intended libm*, it deleted the whole lib dir from root. This is a dedicated webserver. What should I do?
Restore from your backups OR update your resume.
If for some reason you don't have backups, you might be able to get the appropriate lib files from your development server.
Its a new server, no backups yet. I cannot execute any commands (at least all that I have tried). Its a Fedora Core 2 box.
Edit: I cant even login now.
Mount the HD as secondary on another machine with fedora core and copy
all said lib* files.
Or: make a second Fedora core install on another partition and copy all said lib* files.
Or: make a list of all Fedora core lib* files, boot your machine with a live CD, mount / partition (of broken system) somewhere and copy said files.
HTH
After you fix it, alias your rm command 
so that rm runs in interactive mode! And, work under a non-root ID.