I am trying to update a virtual server using physical media (SLES 11 SP3 ISO) to upgrade offline but can't get past the stage of Specifying the Partition to Update.
I receive the error: "No installed system that can be upgraded with this product was found on the selected partition"

Here is a screen shot of the error:
2015-0408 Issue upating to OES 11 SP2.png


Attempted fixes:
I've set the /boot and / partition mount point to use device paths.
The server has been fully patched with YOU and rebooted a number of times.
Searched the Knowledgebase and the update readme file.

Info about the server

Novell Open Enterprise Server 11 (x86_64)
VERSION = 11.1
PATCHLEVEL = 1

SUSE Linux Enterprise Server 11 (x86_64)
VERSION = 11
PATCHLEVEL = 2


FSTAB

dev/disk/by-path/pci-0000:00:10.0-scsi-0:0:0:0-part2 swap swap defaults 0 0
/dev/disk/by-path/pci-0000:00:10.0-scsi-0:0:0:0-part3 / btrfs defaults 1 1
/dev/disk/by-path/pci-0000:00:10.0-scsi-0:0:0:0-part1 /boot ext3 acl,user_xattr 1 2
proc /proc proc defaults 0 0
sysfs /sys sysfs noauto 0 0
debugfs /sys/kernel/debug debugfs noauto 0 0
devpts /dev/pts devpts mode=0620,gid=5 0 0


FDISK

Disk /dev/sda: 26.8 GB, 26843545600 bytes
255 heads, 63 sectors/track, 3263 cylinders, total 52428800 sectors
Units = sectors of 1 * 512 = 512 bytes
Sector size (logical/physical): 512 bytes / 512 bytes
I/O size (minimum/optimal): 512 bytes / 512 bytes
Disk identifier: 0x0000e92f

Device Boot Start End Blocks Id System
/dev/sda1 * 2048 321535 159744 83 Linux
/dev/sda2 321536 4530175 2104320 82 Linux swap / Solaris
/dev/sda3 4530176 41943039 18706432 83 Linux


DF -H

Filesystem Size Used Avail Use% Mounted on
/dev/sda3 18G 13G 3.3G 80% /
udev 940M 88K 940M 1% /dev
tmpfs 940M 148K 940M 1% /dev/shm
/dev/sda1 152M 47M 98M 33% /boot

I hope someone has a good idea to get past this issue.

Regards
Gordon