OK, here's the setup:

Running SLES10sp1 as host
Running SLES10sp1 with OES2 as XEN "guest"
Need to patch SLES10sp1 host to SLES10 sp2
Then need to upgrade SLES10sp1/OES2 xen guest to SLES10sp2 and OES2 sp1

I know I should be able to just patch the host up to SLES10sp2 w/o problem by downloading the .iso(s) adding them to the installation sources and doing an in place upgrade OR just updating the server through the Online Update process.

The question becomes, What's the preferred methodology for updating the XEN guest?

Do I need to set up the host as a network installation source with both the SLES10sp2 iso and the OES2 sp1 iso for the upgrade or is their another way? Doing this remotely so physical access to the servers is an issue.