I did not try the Suse Live CD to install LFS, I did/do use the Knoppix Live cd (and it works).
The tools link is important. If you cannot create it, there's no point in continueing without it.
Don't know if you have the bandwith to download the Knoppix live cd (http://www.knoppix.net/get.php
), but the combination Knoppix - LFS is a proven concept and well 'documented'.
You will hit 1 or 2 minor problems due to the use of the Knoppix Live cd.
The 'no more pty's' problem (chap 6, binutils 2.14) being one, but there are solutions for this problem (which can be found using your favorite searchengine).
Hope this helps.