I am running Suse 11 SP1 as a Xen server with various VM's. I shutdown the
VM's and booted off the SP2 CD and completed the update. After the reboot
the system shows only SP1 and no option to boot into XEN. The command uname
-a shows the SP1 kernel and there are no network interfaces.

More of the puzzle:

The disks are partitioned as follows:
/dev/sda1 --- boot
/dev/sda2 --- swap
/dev/sda3 --- /

So I ran the upgrade again and notice that the disk partition that will be
updated is /dev/sda3. When selecting "Show all partitions" I see that
/dev/sda1 (boot) is unknown.

If I boot the system as a SP1 server, my disks are all 100%

My question is as follows: If I do a "New Installation" to Suse11 sp2 will I
lose my existing VM's and the current disk partitions?

As always, any help would be great.