Version: Konsole 1.6.6 (using KDE 3.5.10) OS: Linux Installed from: Ubuntu Packages If you right click on a bookmark folder in the 'Bookmarks' drop-down menu, it disables expansion of that folder (the contents are no longer shown when you hover the cursor over the folder). You can 'fix' this by right clicking on a different bookmark folder (which then breaks the new folder, but restores normal functionality on the original folder). This persists until you close Konsole. I'm not sure if this affects Konsole in KDE 4.x.
KDE 3 is not supported. I couldn't reproduce on KDE 4.2.x