The original steps are listed at novell site:
http://www.novell.com/support/kb/doc.php?id=7010200
Here are the steps I executed in order to upgrade Linux SUSE11 from SP1 to SP2:
1. Installed the following packages:
SUSE_SLES-SP2-migration
sle-sdk-SP2-migration:
2. Started "wagon" (linux update tool)
3. Followed wagon's instructions.
- registered the system
- enabled both SP1 and SP2 repositories (this is critical, otherwise there were some dependcies shown which could not be resolved)
- accepted all defaults and exected the migration process
4. Rebooted the machine
5. Ran wagon again
6. After going through the steps it showed that the system upgrade was successful