Haven't seen anyone mention that they have tried this. But we did this the other day and it's working wonderfully. Have updated more than a few clients using Local Update Publisher.

I'm planning on deploying the update (which of course is a full install) to all Windows Vista computers that have the certificates and do not have the IR7 install. We tested on Windows 7 and Windows Vista. No failures and no user interaction required.

A little reading will go a long way to making this really easy. Two of the most important items that I need to do prior to approving the update was to deploy the Novell certificate, and modify the install.ini so the installation would continue with no user prompts. The certificates we deployed with registry settings (another thing I don't see mentioned much but we do regularly) via ZCM.

Some experience with Local Update Publisher prior to attempting this install will help. But once you're comfortable with deploying 3rd party updates via Local Update Publisher, the Novell client should be pretty easy.

What's required?
WSUS infrastructure
Local Update Publisher
WSUS certificates deployed to all workstations
Novell certificate deployed to all workstations
Group Policy that allows for locally published updates
Install.ini that allows the update to complete with no user input

I'll post a complete how to in about a week.