Version:           1.3.2 (using KDE KDE 3.2.3)
Installed from:    Compiled From Sources
Compiler:          gcc version 3.3.3. 20040412 (Gentoo Linux 3.3.3-r6, ssp-3.3.2-2, pie-8.7.6) 
OS:                Linux

I use konsole as a desktop console ( modified call with kstart: params: --keepbelow --skiptaskbar, menubar, toolbar and titlebar hidden ) and therefore want the tabbar to be hidden when there is only one console. I tested the dynamic hide function with the Transparent for MC schema enabled and the whole konsole window except the menubar and titlebar ( made both visible again for the test ) are not repainted. So the working space of konsole got totally screwed up until I reselect the schema.
After doing that, the window gets back its normal repaint behaviour. The same can be achieved by opening another session via CTRL+SHIFT+N.

Something worth mentioning is that if you got dymanic hide as default, the problem does not appear in the first place. But it occurs again when you close all sessions except the last, then the konsole doesn't get repainted again until another session is opened or the schema is reselected.

Regards