Hi, I had the same problem with my suse 10.1. Luckily, before ripping it out and going back to 10.0, I found this:
http://suse-irc.org/news.php?extend.9
Basically, the zen-updater, in fact the whole zmd gadget is preventing yast from working the way we came to expect. The link I posted discusses the problem, and has a link to a page with an excellent and easy to follow workaround.