True, and enabling auto-repeat with xset works.

Stefan, did the default value change? Should we run xset
from the yast-start-scripts?

No changes in defaults.

# man kbd
       Option "AutoRepeat" "delay rate"
              sets  the  auto  repeat  behaviour for the keyboard.  This is
              not implemented on all platforms.  delay is the time in
              milliseconds before a key starts repeating.  rate is the 
              number of times a key repeats per second.  Default: "500 30".

Can you attach xorg.conf and Xorg.0.log of installation, please?

Created attachment 186183 [details]
xorg.conf

Created attachment 186184 [details]
Xorg.0.log

According to the logfile default values for Autorepeat are used.

(**) Option "AutoRepeat" "500 30"

So somebody else turns it off? What's the content of Keyboard Control when running "xset q"?

'xset q' reports 'auto repeat: on' but it does not work. I think
this is quite remarkable.

So what are the values? 

Example:
Keyboard Control:
  auto repeat:  on    key click percent:  0    LED mask:  00000002
  auto repeat delay:  250    repeat rate:  30
  auto repeating keys:  00ffffffdffffbbf
                        fadfffdfffdfe5ef
                        ffffffffffffffff
                        ffffffffffffffff
  bell percent:  50    bell pitch:  400    bell duration:  100

What are the values when turing it on with "xset r on"? Does it work now?

Created attachment 186217 [details]
xset -q

Keyboard Control:
  auto repeat:  on    key click percent:  0    LED mask:  00000000
  auto repeat delay:  660    repeat rate:  25
  auto repeating keys:  00ffffffdffffbbf
                        fadfffdfffdfe5ef
                        ffffffffffffffff
                        ffffffffffffffff
  bell percent:  50    bell pitch:  400    bell duration:  100

(In reply to comment #7 from Stefan Dirsch)
> What are the values when turing it on with "xset r on"? Does it work now?
Still open issue. To be answered by the reporter Jiri Dluhos.

Confirmed, "xset r on" enables the auto-repeat.

So, according to "xset q" it's enabled, but doesn't work. After enabling with "xset r on" we get the same output of "xset q", but this time it works?

Sorry, I have missed the second part of your question...

the auto-repeat works, and the reply from "xset -q" is:

----

Keyboard Control:
  auto repeat:  on    key click percent:  0    LED mask:  00000000
  auto repeat delay:  660    repeat rate:  25
  auto repeating keys:  00ffffffdffffbbf
                        fadfffdfffdfe5ef
                        ffffffffffffffff
                        ffffffffffffffff
  bell percent:  50    bell pitch:  400    bell duration:  100
Pointer Control:
  acceleration:  2/1    threshold:  4
Screen Saver:
  prefer blanking:  yes    allow exposures:  yes
  timeout:  0    cycle:  600
Colors:
  default colormap:  0x20    BlackPixel:  0    WhitePixel:  65535
Font Path:
  /usr/share/fonts/truetype/,/usr/share/fonts/uni/,/usr/share/fonts/misc/,/usr/share/fonts/misc/
Bug Mode: compatibility mode is disabled
DPMS (Energy Star):
  Standby: 1200    Suspend: 1800    Off: 2400
  DPMS is Enabled
  Monitor is On
Font cache:
  Server does not have the FontCache Extension
File paths:
  Config file:  /etc/X11/xorg.conf
  Modules path: /usr/lib64/xorg/modules
  Log file:     /var/log/Xorg.0.log

----

Ok. It doesn't make any sense, but I'm not aware of any other workaround than YaST2 running "xset r on" to fix this issue.

That would be completely okay, but I wonder why it started to work this way in alpha0? Did the keyboard input subsystem change since openSUSE 10.3?

We have a new Xserver (same keyboard driver as on 10.3), but I doubt that this is the culprit.

added workaround