I started to post this as a question, but found an answer. Decided to go ahead and post in case anyone else has this issue:

Had a server that we attempted to upgrade from oes2sp1 to oes2sp2 via online update. All the patches installed fine, but on reboot the server would hang at configuring NSS. I let the server sit overnight and it remained at that point. All services appeared to be running fine, but the main screen would not go past this point. I rebooted the machine several times, but it would never go past that point.

/var/log/messages showed some ldap 80 errors from namcd.

"/usr/sbin/namcd : Error [80] in LDAP search while trying to fill passwd structure"

On a past call with Novell TS, we were told to change our /etc/nam.conf file to have the preferred_server set to the local system, rather than a remote server which was the default, to resolve a problem with the servers stuck in a sort of loop. I decided to change this setting back and reboot once more. On this reboot, the update completed without error.

Since our SR is still open with Novell, I intend to add this information to the case to find out more info.

Just glad it finally came up! :)