Turns out, the server DVD drive is not reading my OES SP2 w/SLES11 SP3 disc. I verified the burned disc is readable on other PC's. So, can i update using the ISO that i downloaded? Yast->add-on products, maybe?
Maybe you can get a slimline USB DVD writer? Most physical servers I manage don't have a DVD drive, just plug in the USB and boot from that.