Trying to install beta2 directly from iso image fails, because yast fails to add repository from iso image url.
Steps to reproduce:
Put opensuse 11.1 iso image on any readable partition.
Do as instructed here http://en.opensuse.org/Installation_without_CD#Installing_from_data_saved_on_your_local_machine
to load the initrd and linux kernel with grub and select iso image as installation source.
Yast will load with no problem and proceed, but will fail when trying to add the repository source with the following message (I've translated from spanish so it may be a little different):
Can't create repository from url iso:/?iso?opensuse.iso&url=hd:///?device=/dev/hda1&filesystem=auto
Details:
Failed to mount /mounts/mp_0014/opensuse.iso on /var/adm/mount/AP_0x00000001
Unable to verify that the media was mounted