Got the networking bit working
1. Started installation directly as PVM by booting with the xen kernel image and ramdisk image present in the installer CD. Created a sparse image.
2. Had to do an FTP install from the on-line mirrors as the CD drives would not be recognised, nor does the CD-ROM contain the structure required for a local FTP install.
3. Post install mounted the sparse image and created soft-links vmlinuz-xen and initrd-xen and modified menu.1st accordingly.
4. Booted in and recreated initrd as per old.nabble.com/Booting-DomU-gives-XENBUS-errors-td17714307.html
5. Recreated ifcfg-ethx scripts for the interfaces and restarted network. The interfaces come alive.
6. wget and rpm -ivh -f kernel-xen rpm again. This takes care of proper initrd with all the requisite modules inclusive of xennet and xenblk
7. Modified the vm conf script to use pygrub as the bootloader. Reboot and all's well.
This would not have been possible w/o the links posted by you. Thanks to you and their authors.
TIP: Used convirt to assist in the installation. Can do w/o it also.
Will try to chronicle the entire process in detail w.r.t. opensuse dom0 very soon once the test runs are over.
The display needs to be fixed as yet but is not a major bother as remote access works.