The graphics driver/hardware is the the crux of the problem here. Have you tried booting with the ‘nomodeset’ option? You can type that at the grub prompt, then press [Enter]. It will cause Xorg to fall back to using the fbdev driver, but good for this test. The release notes mention
Initializing Graphics with KMS (Kernel Mode Setting)
With openSUSE 11.3 we are switching to KMS (Kernel Mode Setting) for Intel, ATI and NVIDIA graphics, which now is our default. If you encounter problems with the KMS driver support (intel, radeon, nouveau), disable KMS by adding nomodeset to the kernel boot command line. To set this permanently, add it to the kernel command line in /boot/grub/menu.lst. This option makes sure the appropriate kernel module (intel, radeon, nouveau) is loaded with modeset=0 in initrd, i.e. KMS is disabled.
In the rare cases when loading the DRM module from initrd is a general problem and unrelated to KMS, it is even possible to disable loading of the DRM module in initrd completely. For this set the NO_KMS_IN_INITRD sysconfig variable to yes via YAST, which then recreates initrd afterwards. Reboot your machine.
On Intel without KMS the Xserver falls back to the fbdev driver (the intel driver only supports KMS). On ATI for current GPUs it falls back to radeonhd. On NVIDIA without KMS the nv driver is used (the nouveau driver only supports KMS).
You may need to file a bug report on this.
One last idea: This ThinkWiki page has a section dealing with xorg.conf and docking stations (disabling). It may be possible to use these lines to get a working login display, then use xrandr to configure dual screens (if connected) once logged in to the desktop.
This would get added to /etc/X11/xorg.conf.d/50-device.conf
# ADD THIS IF YOUR LAPTOP DOES NOT HAVE A TV CONNECTOR or DOCKING STATION
Option "monitor-TV" "TV"
This would get added to 50-monitor.conf
# ADD THIS IF YOUR LAPTOP DOES NOT HAVE A TV CONNECTOR or DOCKING STATION
Section "Monitor"
Identifier "TV"
Option "Ignore" "True"
EndSection
No promises that it will work though.