Take a look at the detailed instructions for internet installation:
Also, you are trying to use the wrong directory on the server.
The directory *should* be /pub/opensuse/distribution/10.2/repo/oss
If the need arises, you can IM me- timothyb89 (yahoo) and firstname.lastname@example.org
EDIT: If you want to use a faster server, such as kernel.org here's the details:
And the info about opensuse.org servers is incorrect. Here's the real directory:
Non Open-source (this will save you some problems later): /distribution/10.2/repo/non-oss/
For the non-oss, in one of the first install screens, you will be asked for additional install media. Enter these details for it.