I am trying to install the xorg-x11-devel*****rpm package which I downloaded from one of the SuSE sites.
Yast keeps telling me: "Following packages haven't been found on the medium" xorg-x11-devel*****rpm

So I also tried to set the installation directory as a Yast Source directory, still no luck.

Any idea how I can get the package installed?
I need it to install the ATI fglrx driver.

Have you tried installing it manually using rpm (#rpm -Uvh somepackage.rpm)?

Everyone has been having this problems and all are aware of this that, Yast2 fails to install from the local directory. Make a note of the weblink from where you downloaded the rpm package. All you need to do is goto "Installation sources" under Yast2 control panel and click on "Add" button. Select Add URL and type in or paste the weblink (website link without the package name, I mean the complete path to the directory containing the packages) and click on Finish.
Once done, launch Yast2 package installer which should list all the packages on the website you just specified. Select the packages you want installed and Finish.

Check these links out:
http://en.opensuse.org/Package_Repositories
http://en.opensuse.org/Additional_Ya...e_Repositories

You can try rpm command also.
BTW, why do you need xorg-x11-devel package ?

No I haven't
Reason being that I didn't want to risk breaking any dependencies.
But it looks like that this is my only choice now.
I am starting to see what people are saying about version 10.1, it certainly is quirky in some of the aspects like YAST (which was great in SuSE 9.3) zen etc.

Thanks for the very quick replies.
I will try Kevkim55 suggestion first, before I force the issue through the shell.

Right click the file, select Open with install software. It will install and resolve any package depencies.

Have you tried Smart? it works greats