Thanks to all that replied.
I've managed to create root on an LVM and I used VNC ( all gui ).
There is an outstanding item in bugzilla.novell.com , #201692, regarding
this error.
The workaround is to partition the disk first, before creating the volume
group:
Start the install and use a VNC session :
.
.
.
>>Disk Activation
>>>>Configure DASD Disks
>>>>Activate
>>>>Format
>>>>>>Installation Mode
>>>>>>New Installation
>>>>>>>>Clock and Time Zone
>>>>>>>>>>Installation Settings
>>>>>>>>>>Expert
>>>>>>>>>>>Change
>>>>>>>>>>>>Partition
>>>>>>>>>>>>>>>>for /boot and swap
>>>>>>>>>>>>>>>>>>>>Create
>>>>>>>>>>>>>>>>>>>>Format
>>>>>>>>>>>>>>>>>>>>assign mount point
>>>>>>>>>>>>>>>>for the volume group
>>>>>>>>>>>>>>>>>>>>Create
>>>>>>>>>>>>>>>>>>>>Do Not Format ( this is the key )
>>>>>>>>>>>>>>>>>>>>Erase the mount point, should be blank ( so is this )
>>>>>>>>>>>>>>>>LVM
at this point one can define the logical volumes and their mount points.
>>>> Confirm installation
>>>>>>Install
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