Version:           1.3 (using KDE 3.2.3-6.1.2.kde, Fedora Core release 2 (Tettnang))
Compiler:          gcc version 3.3.3 20040412 (Red Hat Linux 3.3.3-7)
OS:                Linux (i686) release 2.6.8-1.521

I have placed a sample file at

ftp://wwwastro.msfc.nasa.gov/pub/tennaaf/kde/bug.f

Notice that each line begins with a tab character.  First, open the
file with kedit and insert a single space at the very beginning of
the file and then save.  On my system I find that in saved file *every*
tab character has been replaced by a space (and not several spaces
to emulate a tab).  On a larger file, some tabs were left untouched,
but most were changed.  Note, just opening the file and then clicking
save without making any (user requested) changes also clobbers the tabs.

I tried deleting keditrc and also changing Word Wrap setting but nothing
changed.