Welcome to LQ. The installation CD's should be bootable, and as long as you've got the boot sequence in your BIOS set up to go to the CD drive first, you should be able to get the installation started. It's a little unclear at what point this error message is being generated, but in any case I'd suggest taking care of the parititioning first, before trying to install Linux. In other words, make partitioning a separate task from the intstallation rather than a step within the installation.
Assuming you don't need to retain anything on the hard drive, you could just drop all the existing partitions, then create 3 Linux partitions - one for the swap space (perhaps 256Mg max) and then split the remaining space between the root partition and the /home partition. Partitioning is a very subjective issue though, and different people have different opinions as to what is best. Once the partitioning is complete, starting the Suse install should go smoother, because the target partitions will already exist. Good luck with it -- J.W.
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