Version:           1.13 (using KDE KDE 3.5.5)
Installed from:    Ubuntu Packages
Compiler:          Ubuntu Core Repositories 
OS:                Linux

This is most likely related to Bug 130860, but I thought it was different enough to warrant its own report.  Here were the steps I went through:

1.) I opened Kaudiocreator on a mix CD given to me by a friend.  Surprisingly, the track titles were immediately set (though not the track artists), even though a popup message "No CDDB record found" popped up.  (My CDDB settings are server: freedb.freedb.org port 80.)  Also automatically set were the Album Artist ("Mix") and Album Title ("Disc_022707_3").  The disc ID is "bb0dfa0f".  (I have no idea how it got the track titles if CDDB didn't have it.  Does Kaudiocreator check Musicbrainz?  Do some CDs have a piece of data on the CD that contains info?)

2.) Being a mix CD, it had multiple artists, so I clicked "Edit Album", checked "Multiple Artists" and added entries to the "Artist" columns by double-clicking on them and typing in the names.  I also changed "Album Artist" to "Various Artists" and "Album Title" to "Ballroom Mix CD".

3.) When I hit "OK" and returned to the main view, the entries in the "Title" column had changed from "Title" to "Artist / Title".

4.) When I clicked on "Edit Album" again, "Multiple Artists" was unchecked, and the titles were listed as "Artist / Title", with the "Artist" column empty.

5.) When I checked "Multiple Artists" again, the fields reconciled - "Title" became the title of the track, and "Artist" was populated with the artist, looking just like the end of Step 2.

6.) When I clicked OK again, I was brought back to Step 3 - the Title field once again became "Artist / Title" instead of an Artist field being created.  Going to "Edit Album" again repeated Step 4, and so on.

I wasn't sure if this behavior was a bug or just really confusing, so I tried ripping/encoding the CD anyway.  My encoding template is set to this:

~/music/%{albumartist}/%{albumtitle}/%{number} - %{artist} - %{title}.%{extension}

However, the track filenames were not correct.  For example: Track 12, "Temperature" by Sean Paul was saved as:

~/music/Various Artists/Ballroom Mix CD/12 - Various Artists - Sean Paul %2f Temperature.ogg

I'm assuming %2f is the bash literal for an escaped forward slash.  Expected behavior would have been:

~/music/Various Artists/Ballroom Mix CD/12 - Sean Paul - Temperature.ogg

Another note: The General Configuration option "Automatically Separate Multi-Artist CDDB Entries" was UNCHECKED and "Perform automatic CDDB lookup" was CHECKED.

I removed the cached entry in ~/.cddb generated by my noodling with the CD info, and I tried all of this again with "Automatically Separate..." CHECKED and Automatic CDDB lookup disabled.  However, everything was still the same (including the unexpected behavior).