Ok guys, here is the deal.
The recent update of KDE-4.1 from KDE4:Factory did not have all the dependencies for all the packages. What was missing was libqt4-4.1.1 package. Due to this missing dependency, kde4base, kdebase4-runtime and some plasma theme packages were not upgraded. So most of the packages were upgraded but not all. Due to this incosistency we had to face the "checker-board". (We can coin it as a term

)
To resolve this issue, just add the QT4 build service repo to your repository list.
Code:
sudo zypper ar "http://download.opensuse.org/repositories/KDE:/Qt44/openSUSE_11.0/" "KDE:Qt"
sudo zypper refresh
Once thats done, update all the packages
Code:
sudo zypper up -t package
sudo zypper dup
Thats it. Restart your system and you should have your favourite KDE4 back with all its charm

.
There is *no need* to delete or move ~/.kde4 or ~/.kde and loose all your settings. There is also *no need* to reinstall all the KDE4 packages.
- Thejaswi Raya