HELLO EVERYONE - I DID IT. I WILL DESCRIBE MY EXPERIENCE IN ORDER OTHER NEWBIES LIKE ME TO BE ABLE TO TRY IT ON THEIR OWN. So let's start from the beginning:
1. Downloaded latest NVidia Driver from
http://www.nvidia.com/
2. Run YaST update to fetch the nvdriver that is supposed to be updated.
3. Reboot in safe mode and login as root.
4. After login as root # init 3
5. After init 3 go to the dir you have downloaded the nvidia driver and type: sh Nvidia-driver-name-version.run
6. The installer unzips and says - currently you have an NV Driver installed. In order to update you have to remove the old one. Do you want to proceed - YES - NO
7. After clicking YES the installer remooves the YaST updated driver and replaces it with the NV driver from the nvsite. After finishing the update the Nvidia manager says: RUN SAX2 TO CONFIGURE YOUR HARDWARE
8. After finishing installation, on the command screen type # sax2 -i (THE -i switch ignores current configuration and loads normally the sax graphical interface that looks a bit strange - some small fonts, etc.)
9. Set up your monitor carefully - check the refresh rates and model name as per your documentation. when everything is done click OK and then Apply. SAX2 will ask you to test the new settings - click TEST. If no problems SAX2 will ask you to save your settings and will exit.
10. Reboot to normal mode - the screen will go to your maximum res first, and then will turn back to the last one you have used (e.g. 1024 * 768).
11 THEN YOU CAN CHECK MONITOR SETTINGS AND CHANGE RES TO WHATEVER YOU WANT.
It worked for me - hope it will work for you as well.
It seems that SuSe 10.0 Automatic setup sometime fails testing the settings, etc. so manual installation is the best thing as always.
Good luck everyone.