You need to partition the hard drive before beginning the install and create a linux swap partition. YAST should be asking you where the swap partition is when it tells you that there is not enough memory. I tried an install on a 150Mhz Pentium with 36 Meg ram and couldn't do it.
I tried installing on a 166mhz Pentinum with 64MB RAM and it couldn't do that either. At the point it tells you to activate swap, you can't. If you don't have a swap partition already on the disk, you're stuffed. It doesn't even leave you in a position to create one (i.e. a shell with fdisk, mkswap, swapon, etc). As I was working on a CD-less machine, I ended up downloading a Linux-on-a-floppy-disk distro and setting the hard disk up with that. I was not impressed, but SuSE is clearly heading away from low end machine support these days, so I shouldn't have been surprised. -- Microsoft Palladium: "Where the hell do you think YOU'RE going today?"