Version:            (using KDE 4.0.0)
Installed from:    Ubuntu Packages

Been using KDE 4.0 in both Kubuntu 7.10 (gutsy) and 8.04 (hardy, development). On my system, I use an external hard drive connected by USB as a storage drive for my documents and such. In KDE3, I liked how I was able to change the icons of folders as well as adjust how each folder could be viewed. Any changes I made, either with Konqueror or Dolphin, were kept.

However, using Dolphin or Konqueror in KDE4, I've found that any changes I make to the viewing preferences on the external drive don't stick - custom folder icons don't change, and changing a folder to detail view, leaving it, then returning to that folder finds that it's back to the default icon view. Dolphin seems to create a .directory file in each folder where the settings should be stored, but opening up the .directory files with KWrite reveals they're blank. 

I can change the view setting in my home folder just fine, and this is not an issue of needing write permission for the files on my external - I can move, copy and remove files from it just fine. It's just that the Dolphin kpart seems to be spitting out blank .directory files when it should saving custom folder view settings.

Steps to reproduce:
1) Plug in a USB flash drive
2) Create a new folder on the flash drive.
3) Right click and select Properties on the folder
4) Click on the icon image and select a new icon for the folder
5) Press OK and save the new icon. The folder icon should not change
6) Go into the folder, choose to view hidden files and open up the .directory file in a text editor. It should be blank.