Found the fix here.
The available solution is in the openSUSE 10.3 Release Notes:
Older Intel Graphics Chips
Older Intel graphics chips are supported by two drivers (“i810” and
“intel”). The intel driver is the default on openSUSE 10.3 due to the
high demand for features like native mode setting (no longer VESA BIOS
based) and RANDR 1.2 support.
When updating to openSUSE 10.3, the i810 driver is not exchanged with
the intel driver. Use “sax2 -r” to switch to the intel driver.
The intel driver is still not as stable as i810; use “sax2 -r -m 0=i810”
to switch back to i810, if you encounter problems that did not occur
previously with the i810 driver. In those cases, consider to open a bug
report against the intel driver.