As the title indicates, I’m using 3.5. I tried 4 as well and it had some broken behavior too, but I’m not at all familiar with 4 and so I didn’t know if it’s just unstable in general or if it was dying on the /usr/local thing as well.
Maybe, beagle is the culprit! Try remove all stuff concerning beagle using yast->software manager. I’ve installed my copy of SuSE 11 using the live-CD and beagle hasn’t been installed so far. Beagle is infamous to be very slow and processor-hungry so the processor can’t do anything much when beagle is working.