Version:            (using KDE 4.2.2)
OS:                Linux
Installed from:    Ubuntu Packages

This is a bit hard to described but in my opinion it worked "correctly" in konqueror 3.5.x but is broken in 4.2.x. In "detailed" view in 3.5.x when you click on a folder icon to go into that folder, a dotted outline would appear around the icon before showing the files and directories in that folder. Then when you go "back" or "up" that same folder would maintain its outline and position on the screen. You could then go into other folders or files immediately above or below it.

In 4.2.x the outline on the folder icon appears before you go into to it. But when you come "back" or "up" the outline disappears and, the directory list moves back to the top (noticeable only if the directory list is long), causing you to loose your place as to where you previously were and requiring you to scroll back down to or near the folder you had just entered.

The only work around for this that I can find is to use the "lock to current location" view menu option. However, this causes a new window to appear when you click into the folder. This happen regardless of how the konqueror option "open folders in separate windows" is set.