I just installed SuSE recently by FTP and this is what worked for me:
Before you do anything, find the numeric IP address of the FTP server you're going to use. For example, I used ftp.mirror.ac.uk
To find the numeric IP, you can ping the server from a DOS prompt in Windows by typing the following:
ping ftp.mirror.ac.uk -n 1 (substitute whatever server you want)
In this example, you'll get back 184.108.40.206 as the numeric IP.
Write down the address and save it for later.
Boot from the CD. From the first options screen, I press F3 and change to text mode; none of the other resolution options worked for me.
Next, select installation and hit enter. Don't put anything in the text field at the bottom.
Next screen, click OK for CD in drive. (You don't have it, but that's OK).
You should see a main menu next. You'll probably need to get your network card recognized before you can connect, so choose "Select Kernel Modules" (Hardware Drivers), then "Load Network Card Modules", and pick your card (hopefully you know what you've got).
It will find your network card and ask for Settings. I was able to leave this blank and hit Enter.
Back at the Main Menu, select "Start Installation"
Choose "Network Install"
Auto Config via DHCP (this might be different for you, but should work for most on broadband connections).
Now you get to enter that IP address you wrote down. Just the numbers. Nothing else.
You can probably skip HTTP Proxy, and choose the "No Password" option.
Next you'll specify the directory path. This is whatever comes after the FTP server you've chosen. In my case it was:
It should then start downloading the installation routine to a RAM disk. From there it's pretty straightforward.