Version:           2.0 (using KDE 4.0.5)
Installed from:    Ubuntu Packages
OS:                Linux

The problem is that konsole does not seem to completely emulate xterm compatibility.  It seems to emulate positioning and things, but that's about it.  For instance, this test function in bash will dynamically change the font size in xterm, but fails in konsole.  (It fails in gnome-terminal as well, FYI.)

function font() {
	font_size=11
	font_weight="medium"
	if [ "$1" == "big"    ] || [ "$2" == "big"    ]; then font_size=26; fi
	if [ "$1" == "bigbig" ] || [ "$2" == "bigbig" ]; then font_size=34; fi
	if [ "$1" == "bold"   ] || [ "$2" == "bold"   ]; then font_weight="bold"; fi
	_font="\e]50;-*-lucidatypewriter-$font_weight-r-*-*-$font_size-*-*-*-*-*-iso8859-*\007"
	echo -ne "$_font"
}

# execute with '$ font big'

I also have the ability to change my background color with escape sequences in xterm, but not so in konsole.  For instance, this bash code works in xterm:

w='rgb:ff/ff/ff'  # white
g='rgb:aa/aa/aa'  # light/linux gray
b='rgb:00/00/00'  # black

w_background="\e]10;$b;$w;$b;$b;$b;$b;$w;$w\007"
g_background="\e]10;$b;$g;$b;$b;$b;$b;$w;$w\007"
b_background="\e]10;$g;$b;$b;$b;$b;$b;$w;$w\007"

# execute with '$ echo -ne $w_background'
# execute with '$ echo -ne $g_background'
# execute with '$ echo -ne $b_background'

A reference for the different options and escape sequences: http://rtfm.etla.org/xterm/ctlseq.html

I think this bug is not the same, but is related to these bugs about TERM=xterm

http://bugs.kde.org/show_bug.cgi?id=145977
http://bugs.kde.org/show_bug.cgi?id=169013

Also:

Konsole 2.0 (Using KDE 4.0.3)

$ dpkg -l *kde4* | grep konsole
ii  konsole-kde4      4:4.0.3-0ubuntu2     X terminal emulator for KDE 4

$ uname -a
Linux hani 2.6.24-19-generic #1 SMP Fri Jul 11 21:01:46 UTC 2008 x86_64 GNU/Linux

$ lsb_release -a
No LSB modules are available.
Distributor ID: Ubuntu
Description:    Ubuntu 8.04.1
Release:        8.04
Codename:       hardy