Version: (using KDE KDE 3.4.0) Installed from: Gentoo Packages The default applications.menu in KDE includes the following <Menu> <Snip> <DefaultMergeDirs/> <MergeFile>applications-kmenuedit.menu</MergeFile> </Menu> This means applications-kmenuedit.menu has to be located in /etc/xdg/menus/applications-kmenuedit.menu according to the menu-spec. But it is located in ~/.config/menus/applications-kmenueedit.menu. KDE somehow finds it there, but other implementations can't find it.
Confirmed: "If the type attribute is missing or set to "path" then the contents of the <MergeFile> element indicates the file to be merged. If this is not an absolute path then the file to be merged should be located relative to the location of the menu file that contains this <MergeFile> element." http://standards.freedesktop.org/menu-spec/menu-spec-1.0.html