Version:            (using KDE KDE 3.0.8)
Installed from:    Gentoo Packages
Compiler:          gcc version 2.95.3 20010315 (release) 
OS:          Linux

I have the Keyboard Shortcuts for "Window Raise" and "Window Lower" set to Alt+F1 and Alt+F3. My "Focus" under "Window Behavior" is set like this:

Focus Strictly Under Mouse
no Auto raise
no Click raise

when Konsole has the focus, and I press either Alt+F1 or Alt+F3, the window is either raised or lowered as appropriate, but then when I release "Alt" the "Session" entry on the menubar becomes highlighted, as if I had pressed and released Alt by itself. (this behavior didn't exhibit in beta1, only in beta2)

actually, I just noticed this happens with pretty much any kde window with a menubar. I've seen it in konqueror and the control center also.