After reinstalling SuSE, I tried again and upgrading went well!
Here's what I did.
After downloading all kde base packages rpms to a folder, I switched to text mode, and did "rpm -Uvh *.rpm" and it gave me
error: Failed dependencies:
kdebase3-SuSE <= 9.0 conflicts with kdebase3-3.2.1-10
libkateinterfaces.so.0 is needed by (installed) kdeaddons3-kate-3.1.4-35
libkmultiabbar.so.0 is needed by (installed) kdeaddons3-kate-3.1.4-35
libkonqsidebarplugin.so.0 is needed by (installed) kdeaddons3-konqueror-3.1.4-35
After doing some googling, I learned that I had to delete some files in order to upgrade KDE if you're using SuSE 9.0.
As for those 3 files needed, I just had to download 3.2.1 versions of kdeaddons3 and put them in the folder I put other rpms.
So I switched to text mode again, typed "rpm -e kdebase3-SuSE kdenetwork3-mail" to delete conflicting rpms, then did "rpm -Uvh *.rpm" again.
I got some error about files of k3b conflicting, so I deleted k3b, tried "rpm -Uvh *.rpm" and the insallation worked!
Then I did "rpm -qa | grep kde" to check version #s, and upgraded my other installed rpms one by one. Now "rpm -qa | grep kde" shows that all my kde rpms are version 3.2.1!
Thanks for help.