Richard, this seems to be fixed in current Hardy. Can you confirm?
konqueror-kde4:
Installed: 4:4.0.2-0ubuntu4
Candidate: 4:4.0.2-0ubuntu4
Version table:
*** 4:4.0.2-0ubuntu4 0
500 http://archive.ubuntu.com hardy/universe Packages
100 /var/lib/dpkg/status
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[KDE 4] address bars handling of non-ASCII characters is broken
https://bugs.launchpad.net/bugs/192652
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