Thank you for reporting this bug. Did you click apply after changing to double click? I tried to reproduce this by changing to double click, applying, then changing cursor theme, then restarting kde, and didn't have this problem on Feisty Herd 4.
** Changed in: kdebase (Ubuntu)
Status: Unconfirmed => Needs Info
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KDE mouse settings reverts to using simple click
https://launchpad.net/bugs/46914
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