OES2 and SLES10-SP2

Per Novell:

Updating OES2

OES2 systems should NOT be updated to SLES10 SP2 at this time!
Very true. And most especially true if you're running virtualized NetWare! The paravirtualization components in NW65SP7 are designed around the version of Xen that's in SLES10-SP1, and SP2 contains a much newer version of Xen (trying to play catch-up to VMWare means a fast dev cycle, after all). So, expect problems if you do it.

Also, the OES2 install does contain some kernel packages, such as those relating to NSS.

OES2 systems need to wait until either Novell gives the all clear for SP2 deployments on OES2-fcs, or OES2-SP1 ships. OES2-SP1 is built around SLES10-Sp2.