I have done the 8.2 HD install a few times now without major problems. The two issues you mention were exctly the same here ( assuming the suse files are on /windows/D ). This is, as far as I can tell a bug in the install routine.( possibly intentional to deter the casual leach
) you can safely ignore this. Just remember to change the software installation source from with in Yast after you have a running system or you will not be able to add other software from the installation files. I delete the source offered by yast and add another by browsing to the directory containing all of the suse files.
As for the jre-1.3 SuSE don't include it in the FTP install 'coz it's not GPL'ed. Personally I just copy it over from an older SuSE DVD but you can get it fron Sun's website.
Finally when you get to the partioning stage be shure to select 'base on current settings' this will give you a head start by not having to redo all of the existing partions and yet sill allow you to easily partition your remaining 10G.