Version:           1.9.5 (using KDE KDE 3.5.5)
Installed from:    Gentoo Packages
Compiler:          gcc 4.1.1 
OS:                Linux

1. Dual-head setup, no xinerama (first DISPLAY=:0.0 is the notebook monitor, second DISPLAY=:0.1 is my separate LCD)
2. Kontact runs on the SECOND display
3. When fetching my emails with kmail (inside kontact) for the first time, I need to provide a password to open the kwallet. The password dialog pops up on the FIRST display, leaving me puzzled because the kontact window just looks frozen. This is rather inconvenient, especially if the notebook monitor is switched off. 
This happens even if the kwalletmanager is already running on the second display (kicker tray icon).

Just figured out this:
- closed kontact
- started kmail on the second display, kwalletmanager running on the second display with the wallet for the passwords open
- a window pops up on the FIRST display, asking if I want to allow kmail to acces the wallet (Once, Always, Never,...). The titlebar mentioned kded.
Hope this helps.

Thanks