Version:            (using KDE 4.1.2)
OS:                Linux
Installed from:    Ubuntu Packages

When I try to move a submenu to another branch of the Kmenu, it works in the editor. But when I click "apply", I don't see the result in the Kmenu itself. 
And if I close/reopen the kmenueditor, I see why : actually the submenu hasn't been moved, the only change is that a new, empty submenu has appeared where the initial submenu was supposed to be moved to. 
It's like if the kmenueditor failed in moving also the items of the submenu, and so stopped its operation.
Only workaround at the moment : create a new submenu somwhere, move one by one all the items from the old submenu to the new one, and then delete the old submenu... but when there are toon of sub-sub-menus (eg, moving the "games" submenu) it's not very handy.

Good luck and cheers for all the work done.