You will get different opinions about this. Personally, I prefer this advice from the dev’s on the wiki:
We recommend to keep the MBR “neutral”, that is, not consider it part of any operating system. For that purpose, a generic MBR can be used, that simply determines one of the 4 primary partitions by a bit flag, and then loads the first block of that partition in turn, to continue the boot process. The Yast installation offers the option to install such generic code in the MBR; do it when in doubt.
Unfortunately, on many machines today that is a bit challenging, because manufacturers often use 1 or even 2 partitions for “recovery” - they will place the Windows recovery image(s) on 1 and sometimes put recovery program code on the other. This is done because Microsoft forbids them distributing Windows installation media; the MS license restricts use to the factory image. So if along with the “C” drive 2 or 3 primary partitions are taken, then SuSE will need there to be an “extended” primary (inside of which “logical” partitions can be created, thereby getting past the 4 partition barrier) - for most users 3 SuSE partitions are desirable, 1 for swap (the counterpart of Windows pagefile on “C”, but it is preferable to have it on a separate partition rather than as a file on the same partition as the OS), 1 for the OS, and 1 for /home (the counterpart to putting Windows Docs & Settings on a separated “target” partition, a little known but highly advisable feature).
So . . . IME, it’s best if possible to install grub to the root partition and to mark that partition active (options in YaST Boot Loader, even during installation if you enter the dialog), if the root will be on a primary. When this is done, the Windows MBR boot code will start grub, and then your grub control file (menu.lst) can have an entry which will “chainload” boot Windows. If the root will be on a logical partition, then grub can be installed to the extended primary’s boot sector - but for this to work you must install the “generic boot code” with YaST because, while it can boot from the extended primary, the Windows code cannot.
The majority opinion is to just install grub to the MBR. That’s fine - when it works. I’m finding that between what the manufacturers are doing now with the partitions and even messing with the MBR itself, plus Microsoft’s habit of using the MBR for new things and not telling anyone (well, it may be posted on TechNet or MSDN) as has been done with Vista, the above advice about keeping the MBR neutral has even more value now.