Version: (using KDE KDE 3.5.1) Installed from: Slackware Packages konqueror appears to ignor the .directory settings in the home folder. It will remember the view which was applied when I first open Konqueror but after browsing other folder then going back up to home the view is the same as the folder I was just inside.
I did some more testing on this. It seems sometimes the "save view changes per folder" setting gets grey'ed out and can't be selected, however this seems to only be part of the problem. I started editing the .directory files manually and Konq seems to be ignoring part of the settings. I'm using http://developer.kde.org/documentation/library/cvs-api/kdebase-apidocs/libkonq/html/konq__propsview_8cc-source.html as a reference to the .directory files and "SortDirsFirst" seems to be ingored no matter is its set true or false.
It works for me in trunk 20080507
Works for me in svn trunk r807691 (20080507)
Fixed in trunk r808613.