Here’s a comment for anybody else having the same problem.
Basic problem: GUI does not load with NVIDIA drivers in opensuse 12.1 (also in 11.4 and 11.3)
Hardware: NVIDIA 7300 GS
Situation: Fresh install of 12.1 and it worked OK, GUI loaded and system was OK but graphics a bit sluggish. I installed the NIVIDIA drivers and then it would not load GUI:(. I downloaded the nvidia drivers, file “NVIDIA-Linux-x86_64-285.05.09.run” and executed it. The nvidia install automatically removed the nouveau driver. When logging in it would display all of the icons but fail when at the point it was displaying the large blue K for KDE.
I tried a to run the install with the update flag “NVIDIA-Linux-x86_64-285.05.09.run --update”. It downloaded the driver version 290.10 and installed it and all was well.
Hope it helps somebody else.
Thanks.