The fetchnvidia.sh script you saw in YaST is supposed to be the script that fetches, and installs the Official NVIDIA Drivers for you from SuSE. I had some issues with it as well, and had to manually install them from the Nvidia website. For me, this was an easy task, but it is a little involved. Forgive me if I'm making assumptions that you're still pretty new to Linux, and you have more experience than I give you credit for.
I'll do my best to explain from memory. With the latest NVIDIA drivers some of the steps are easier.
1) First, download the NVIDIA drivers from the website. It'll be the NVIDIA-Linux-x86-1.0-<ver>.run file. Remember where you save it (most likely /home/<your user>/). You may need to have the Kernel Headers/Source installed, though I'm not really sure.
1) You need to logout of your Window Manager (KDE/GNOME), and get back to the main login screen so you don't have a session started, it isn't required, but it insures that you aren't running anything that you don't want to lose info from.
2) Press Ctrl+Alt+F6 to get to a console screen, it'll be asking for a login, you need to login as "root", so do so.
3) Once logged in, you need to type "init 3" to shutdown X completely, otherwise the NVIDIA drivers won't install.
4) CD to the directory/folder you saved the .run file in (cd /home/<your user>/), and run "sh NVIDIA-Linux-x86-1.0-<ver>.run". It'll go through a process of asking questions, etc, based on whether it can find and install a pre-compiled module, or has to compile it's own (why you'd need the kernel headers/source installed). Once finished, it should ask if you want it to configure X for you, I recommend doing so, as it eases the final steps for getting it setup.
5) Once it's finishes completely and exits, you can type "init 4" to start X back up (I believe it's init 4, but it may be init 5, most distro's setup runlevel 5 for X, and 4 is unused, but I think SuSE actually uses 4 for X, and 5 is unused). When it starts back up, you should see the NVIDIA logo on a white screen, and then it'll bring you to the system login prompt, or right to the desktop, depending on how it's setup. Open a console, and try running "glxgears" and "glxinfo" and check to make sure it's using the NVIDIA drivers GLX, and such. If it is, then your set to go.
I recommend greatly that you should upgrade from SuSE 9.2 to at least 9.3, if not 10.0. I also re-read your latter posts, and noticed you're having issues with LILO, though I've not ever had any real issues with it, and I don't know anything about the error you speak of, I tend to like GRUB better. It allows for upgrading the kernel without the need to do any major changes, other than adding a menu entry for the new kernel.
In dealing with the SuSE rescue setup, I actually liked it, and it was helpful, but it's been months since I've used SuSE, so I don't recall how it worked specifically, on top of the fact that system setup's differ greatly from one system to another.
If you could give more info on your system setup, such as where SuSE is installed (ie. if you have more than one HD, which HD), etc, I may be able to help.