Version: (using KDE 4.1.2) Installed from: Mandriva RPMs KDE3 version of Konqueror was displaying custom folder icons (when set) in sidebar tree view but currently (KDE 4.1) it always display default folder icon. This was small and useful feature, because folders were more distinguishable.
Bug confirmed in trunk too. Dolphin sidebar panel instead use the right icons.
I've found now that some icons are displayed, but only sometimes, for example when I'm using full directories view (starting from /) icons of folders in home directory are displayed, but after changing to view that starts from user home there are only default icons. But in both cases it displays custom icons for folders that are deeper in hierarchy. Very strange behavior... So I think that this is more bug than wish ;-).
Created attachment 29289 [details] Different tree view behavior (view starting from home vs root)
Still valid, using KDE 4.8.3.
I am working on the new sidebar code. This should be resolved with the new revision. You can try the latest publicly available iteration of the code here: https://github.com/insaner/konqueror