Version:            (using KDE 3.5.9)
Installed from:    Gentoo Packages
Compiler:          gcc (GCC) 4.2.3 (Gentoo 4.2.3 p1.0) 
OS:                Linux

lets have kmail store the password in its accounts in kdewallet
lets have konqueror store logins in kdewallet.
kwalletmanager has not run in this session or no side who requested a password from kdewallet is open.
kwalletmanager is not running, wallet is closed.

start konqueror. start kmail and select a webpage in konqueror that usually pops up a kwallet password request, before kmail can pop up its own password request dialog.
Timing is important!

Both konqueror and kmail will freeze. kded spins at 100% CPU load without doing anything. kded has to be killed. 

If a side which already requested a pw is still open, the bug will not occure. If you are too slow, one will be fast enough to pop the password request dialog open. So it is not too easy to reproduce, but happens once in a while.

This is on a 64bit dual core system.

app-shells/bash:     3.2_p33
dev-java/java-config: 1.3.7, 2.1.5
dev-lang/python:     2.5.1-r5
dev-util/ccache:     2.4-r7
sys-apps/baselayout: 1.12.12
sys-apps/sandbox:    1.2.18.1-r2
sys-devel/autoconf:  2.13, 2.61-r1
sys-devel/automake:  1.5, 1.7.9-r1, 1.8.5-r3, 1.9.6-r2, 1.10.1
sys-devel/binutils:  2.18.50.0.5
sys-devel/gcc-config: 1.4.0-r4
sys-devel/libtool:   1.5.26
virtual/os-headers:  2.6.24
ACCEPT_KEYWORDS="amd64 ~amd64"
CBUILD="x86_64-pc-linux-gnu"
CFLAGS="-march=k8 -O2 -msse3 -pipe"
CHOST="x86_64-pc-linux-gnu"
CONFIG_PROTECT="/etc /usr/kde/3.5/env /usr/kde/3.5/share/config /usr/kde/3.5/shutdown /usr/kde/4.0/env /usr/kde/4.0/share/config /usr/kde/4.0/shutdown /usr/share/config"
CONFIG_PROTECT_MASK="/etc/env.d /etc/env.d/java/ /etc/fonts/fonts.conf /etc/gconf /etc/revdep-rebuild /etc/terminfo /etc/udev/rules.d"
CXXFLAGS="-march=k8 -O2 -msse3 -pipe"

qt is 3.3.8