The details of the solution. I finally got the video to work for mpg and wmv files using xine. I figure I'd post the solution that worked for me . I tried following similar instructions on other posts but none worked. I appears the key was to completly remove xine and all xine related packages before installing clean versions. It's appears like the suse 10.0 version of xine is intentially broken to not play mpg, wmv, and mp3 files.
This part is probably obvious to an experienced user, but as a newbee I needed to learn suse software update procedures.
Go to Menu->System->Control Center (YaST)
Choose the "Installation Source" option.
By default there should be a single entry in the "Software Source Media" for SUSE Linux Version 10.0. Click the Diable Enable/Diable button at the bottom right to shut it off. Then hit the Refresh on or Off until it is off as well. This will tell your system not to go to suse to install the official suse packages.
The following tells the Yast updater where to go to get software updates. Then add (using http) in the server name field enter http://packman.rsync.zmi.at/suse/10.0/
Also hit the enable button to turn status on and also hit the refresh button to set it to on as well.
Now repeat this process and add the following servers to your installation sources using the FTP option instead of HTTP:
What this does is replace the suse CD or DVD with the packman site as the place to go for installation software. As a newbee it took a while to figure out I had to actually specify where to go to get the software if I'm using YaST.
I learned a lot of how to fix it by reading the Jem Report (Hacking OpenSuse)
After seting the Software Source media hit the finish button at the bottom right.
Now the YaST control pannel should still be open.
Go click on the Software management option.
In the Search box type in xine and search.
This will tell you all the packages that are installed in your system that contain the word xine. I uninstalled every single one. Even the ones that had a lock on them saying there are other programs dependent on them. I did this by marking evey currently installed ones to delete (trash can icon). Then I hit accept and zap - they were all removed. I will assume at this point the intentially crippled suse version were removed as well.
I went back to re-install then. search for xine again and this time check autocheck to validate dependencies when you check you package selection. I did this and re-checked all the packages I thought I needed. I then Hit "Accept" and it re-installed xine.
Afterward xine video worked fine for all the types I was looking for. I still don't have sound working yet - but I'm working on that next. I can tell it's playing CD's etc because it reads the tracks and the progress bar is moving.
Hope this helps. It took a while to learn how Suse Linux installations work but i think I have the hand of it.