Version:            (using KDE 4.2.0)
OS:                Linux
Installed from:    Debian testing/unstable Packages

KFileDialog doesn't use the correct sorting algorithm. My ~/.kde4/share/config/kdeglobals shows:

---------------------------------------------------------------------
[KFileDialog Settings]
Automatically select filename extension=true
Breadcrumb Navigation=true
Decoration position=0
LocationCombo Completionmode=5
PathCombo Completionmode=5
Previews=false
Recent URLs[$e]= **removed for the bugreport**
Show Bookmarks=false
Show Full Path=false
Show Preview=false
Show Speedbar=true
Show hidden files=true
Sort by=Name
Sort reversed=false
---------------------------------------------------------------------

So every open/save dialog should be sorted ascending by name - instead it always sorts descending.
Now if I click on the column header to get the list sorted, then my kdeglobals gets switched to "Sort reversed=true" and on the next start it again sorted descending. Clicking again on the column header changes the config to Sort reversed=false again (but on the next start it still sorts ascending...).
The setting seams to work in dolphin but not in the KFileDialogs.