It should do that.
If there is software installable in Yast you have some repositories configured, but they may be mis-configured or updates (on what they contain) may not have loaded. You could try reloading the package info from the repos (no, I do not know how to do that -- try looking around Yast).
Anything more is going to be very Suse specific, so I cannot help you are I do not use Suse myself. Try the openSuse forums.
You should be able to solve this particular problem without upgrading to a newer version.
That said, 9.3 is getting pretty old and I would say it is time to upgrade anyway. I generally upgrade roughly annually. You may be able to upgrade from within Yast, but, again, that is a question I think you should ask on a Suse forum.
It might also be a good time to look at other distros. I like Ubuntu/Kubuntu and Mandriva (both pretty good, Mandriva has the edge if you use KDE), but look around, download some live CDs and try a few - there are plenty of good desktop distros around these days. I find it worth the effort of trying a few things to get what suits me best.