Zypper wants to dl the wrong kernel headers... YaST doesnt have current headers
 

2.6.27.37-0.1 is my kernel but all zypper and YaST can find is 2.6.27.2.28 . is this going to be a problem?

It's probably not going to affect your system very much. It won't matter at all if you never need to install from source (yeah right) but even so everything should still work fine...

The latest in update, Suse 11.1 , example "default" :
' kernel-default-2.6.27.19-3.2.1.i586.rpm '
http://download.opensuse.org/update/11.1/rpm/i586/

Where did you get 2.6.27.37-0.1 ?

And the usual is, that only the original like
kernel-default-2.6.27.7-9.1.i586.rpm
( http://download.opensuse.org/distrib...oss/suse/i586/ )
and the latest update are available from the repo's.
Other versions are deleted from the update repo.

What is the exact name of the package,
zypper intends to remove ?
.....