This bug should be fixed soon. I sent an email to the maintainer of
sysvinit scripts. The kdm (i.e. /etc/init.d/kdm) script at line 59 calls
/etc/init.d/usplash stop instead of /etc/init.d/usplash start. Also
before line 59 add a new line setting the environment variable
DO_NOT_SWITCH_VT=yes.

Refer to the gdm script if you get confused.

-- 
slow kdm/kde startup since upgrade to edgy
https://launchpad.net/bugs/68808

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