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Setting DISPLAYMANAGER_STARTS_XSERVER to "no" will get rid of your local desktop (after an "rcxdm restart" of course :)

You also need to run SuSEconfig, so the Xservers file gets updated

Yes, of course. The best approach is to edit the /etc/sysconfig files using YaST, as then SuSEconfig gets re-run when appropriate. Legal Disclaimer: Any views expressed by the sender of this message are not necessarily those of Application Solutions Ltd. Information in this e-mail may be confidential and is for the use of the intended recipient only, no mistake in transmission is intended to waive or compromise such privilege. Please advise the sender if you receive this e-mail by mistake.