Seems like even on an USB stick, a partition have to get the “bootable flag” in the USB key partition table to be bootable by GRUB or syslinux, so use any fdisk utility to verify this (it may be dangerous to trust YaST for such unusual task)
Probably this is also true of DOS, considering the way MS does things
Also see topic “When USB booting fails” in the link above. It is for installing opensuse on a pen drive, but it may help.