I wouldn’t call it “chainloading” though. update-grub adds kernel entries for direct booting. If you want to chainload openSUSE’s Grub - which is possible too - you have to manually add entries in /etc/grub.d/40_custom. Everything in that file (except the 5 lines at the top) will be appended to Ubuntu’s /boot/grub/grub.cfg after update-grub. An entry to chainload openSUSE’s Grub could look like this:
menuentry "openSUSE 11.4" {
set root=(hd0,4)
chainloader +1
}
Of course you have to replace (hd0,4) with the hd and partition where your Legacy Grub bootloader (stage1) is located.