Hey Marty,
This is what I see on my setup - same OS/patchlevels/WS build
I am choosing "Typical"
Choosing "I will install operating system later"
Next screen defaults to Microsoft Windows and defaults to Windows 7 - this has nothing to do with the installer CD/ISO as at this point, I do not have any CD's/DVD's etc mounted on my system
At this point, you will need to choose Linux and OpenSuse
Is this what you are hitting? If so, I am guessing this is normal behaviour - especially in light of the below:
If I choose "Use ISO Image" and browse and choose the ISO image, the system detects OpenSUSE just fine - I am using the DVD Build0504 by the way
So the ISO itself is being detected just fine. What I think the issue is, is that if you choose "I will install the OS later" the next screen defaults to Windows 7 and I don't see a reason or way that could be related to the ISO or DVD
Let me know if this helps