I have put a few days in on this and was wondering if anyone had experience with setting up SLES 12 (not 11, I already have 11 working), from USB with a custom autoyast (autoinst.xml) on a physical server, with no network, so everything has to be on the thumb drive. Are there some good resources or better documentation out there than the SLES documentation? SLES 12 docs are very detailed on network, PXE install etc… but severely lacking in the basic information on how to do this on USB. So far, the best approach seems to be setting up the custom cd, (which is easy and WOULD work if these servers had cd rom drives), and then using isohybrid to make the iso image USB drive compatible to dd that to a thumb drive. Using the standard cd works fine. Any time I add an autoyast (autoinst.xml) I can’t seem to get the isolinux.cfg settings correct or autoyast (which is auto built by SLES) exactly right to automate the install. Any advice or even reference to documentation I am missing would be great. I am already also working with SLES support and my issue has been forwarded to engineering to fix as what I have tried so far “should work”. If anyone, or everyone, wants more gory details, I’m happy to share them. I’m hoping for a miracle that someone on this list has already done this and can give some basic steps that will work.
edfelt,
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Hello,
Sorry I cannot help you but maybe you can help me since you already implement it on SLES11. 
As I understood you created USB bootable image for auto installation based on autoinst.xml file? Actually I think the tricky part is creating proper isolinux.cfg file?
If so can you give me steps how to do it?
I found one case https://www.novell.com/support/kb/doc.php?id=7001823 but it does not help to me.
Thanks,
Igor