There are many great new features in the SP1 release SUSE Linux Enterprise Desktop and Server. The purpose of this article is to outline the methods available to upgrade from the FCS release of SUSE Linux Enterprise to SP1

Update From DVD or CD

This method is very easy and straightforward. Download the media from here:

SLED
http://download.novell.com/Download?buildid=ecpCimnsrFE~

SLES
http://download.novell.com/Download?buildid=2FNtOnmkx-w~

Burn the ISO(s) to a DVD or CD and boot from it. After selecting your language etc. choose the “update” option rather than “New Installation”. Follow the prompts to complete your upgrade.

Upgrading from the Novell Customer Center

More Here.