Matthew, I am guessing that is a Konqueror + GNOME issue, as I don't see it with Kubuntu 6.10 w/ KDE 3.5.5. Take a look at my attachment, that is what it should look like.
** Changed in: kdebase (Ubuntu)
Importance: Undecided => Low
Status: Unconfirmed => Confirmed
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"Edit" > "Create New" submenu missing
https://launchpad.net/bugs/52099
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