Version:            (using KDE KDE 3.4.3)
Installed from:    Debian testing/unstable Packages
OS:                Linux

Runnig Debian testing, dual boot machine, Windows XP other system.  Hardware clock is in local time.  /etc/defaults/rcS/utc=no, /etc/timezone does not exist.  Running Kmail from within Kontact.

Date/date -u return correct time(s) in console.  Time stamps in file system (touch foo, e.g.) are correct.  In Kmail, time stamp, when first starting application via Kontact, is wrong, off by +5 hours, i.e. if system clock says 10:00 a.m., Kmail thinks it is 3:00 p.m.  (I am in New York timezone). This appears in message list and in timestamp of outgoing messages. 

If I execute Settings|Configure Kmail|Message List| and change the radio button(s) for Date Display, time will be corrected for the next received/sent mail and subsequent mails.  However, this correction seems to "time out".  If machine sits idle for some time (haven't confirmed how long), old/wrong setting will recur.