Version:           0.6.0 (using 4.2.2 (KDE 4.2.2), Kubuntu packages)
Compiler:          cc
OS:                Linux (i686) release 2.6.28-11-generic

i would expect kvkbd to show the keys of the locale keyboard layout (e.g. german or russian), because using an foreign / unfamiliar keyboard layout is IMHO a very typically use-case. but at least for me, it did not, i.e.:
- no detection on program startup
- no detection when switching the keyboard layout while the program is running

standard kubuntu 9.04 installation, afterwords different locales installed (working e.g. in open office), always reproduceable.

by the way, caps lock was detected (showing all letters in upper case), but this was not the case while pressing shift.