Version: (using KDE KDE 3.5.6)
Installed from: SuSE RPMs
Consider such template:
%REM="Default reply template"%-
For me when replying the first line should be quotation and the cursor should be placed at it. But KMail (I don't know why) inserts one blank line as the first line, so the mail really starts from the second line.
I guess this is the same as in bug #140917.
*** This bug has been marked as a duplicate of 140917 ***