Additional info From SuSE Portal
I just found this in SUSE Portal:
Symptom
When you start YaST Online Update (YOU) after having updated your system, the patches offered correspond to the previously-installed SUSE LINUX version.
Cause
You have performed the update from a running predecessor system via the graphical administration tool YaST as described in the following sources:
Version Manual Chapter Title Page
7.1 Configuration 5.4 Updating the System 100
7.2 Configuration 5.5.3 Updating the System 95
7.3 Configuration 4 System Update 79
8.0 Basics 6 System Update 100
8.1 User Guide 4 System Update 51
8.2 User Guide 4 System Update 51
9.0 User Guide 3 System Update 59
This update procedure cannot be used for the base system while it is running. To be updated, the base system must be booted from an installation medium such as a CD or DVD. Thus, the installed system's base components are not in use and the update can be performed.
Consequently, your base system maintained its original version, which is used by YOU to request the corresponding updates.
Solution
Perform a "real" update or a new installation to bring your base system up-to-date.
So I guess unless some-one knows a way around it I'll have to burn the DVD or buy the update.
Let me know if there is a way to do it.
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