Recently I needed to run an application that needs X on a server running SLES10. Because it wasn't necessary to have the application output anything on a screen, the X virtual framebuffer was sufficient to accomplish this. You can easily install the X virtual framebuffer, which comes with the xvfb package in SLES10.
yast -i xorg-x11-Xvfb xorg-x11
Installing the xvfb package is sufficient to start the X virtual framebuffer server, but the application I needed to run also needed some fonts. So, I installed some extra packages as well with yast.
yast -i xorg-x11-fonts-100dpi xorg-x11-fonts-75dpi xorg-x11-fonts-scalable bitstream-vera fonts-config