yast2 and harddisk upgrade

I have SS5 with no working CDROM. I used tftp and rarpd to do a basic
install using YAST2. I can log on now, everything seems fine if a bit
sparse. So I thought to fill out the install a little. I copied the iso
images to the disk and tried to use yast2 to install further packages,
like emacs and source to start with. Problem is that each time I tell
yast2 that the source is on the harddisk it responds "no installation
media found on medium". I tried once pointing yast2 at the iso images,
once at a directory which loop mounted from the iso and lastly I copied
the image from the iso image to a separate directory. Same result
everytime. 

What gives, I don't want to do this package by package by hand...

Thanks for any insight you may share.