No problems here. Thanks though, as I did as you said and was able to change my menu style by adding the particular widget. Now I just need to move it over to the left side of the screen, and change the orange cat back to my black cat.
I'd still keep any bug report going concerning test KDE if you are having problems, which it sounds like you are.
No problems here using kmenuedit. I wonder if you switched to classic traditional style used in KDE 3.5.10 or whatever the number, that you would still have problems?