Hi All,
I was able to make it work in SLES 11, however in openSUSE 11.2 it will simply not appear. Same steps are being performed as below.

In gconf-editor:
apps > gnome-session > option
Enable: show_splash_screen
splash_image: splash/splash.png

Splash image full path is:
Confirmed that the file does exists since I put it there.

That is all I had to do to make it work in SLES 11.

Anyone made it work in openSUSE 11.2? If so what steps have you undertaken?

Is there another way to go around this? Or could this be a bug since it worked fine for SLES 11?

I'm using an Intel Atom N270 (945GSE + ICH7) with Intel GMA 950 type of system.

Thank you for any help.