Version:           0.4.0 (using 4.4.2 %28KDE 4.4.2%29%2C Arch Linux)
Compiler:          gcc
OS:                Linux %28x86_64%29 release 2.6.32-ARCH

I use web shotcuts quite often, but when I try eg. search Google using the shortcuts for query like this "some, thing, to, search, for" (including the quotes and commas) I get query like this %22some%2C thing%2C to%2C search%2C for%22 (taken from the Google's input field after the page with results was loaded).
Characters with diacritics (like ěščřžýáíéúů and others) get "urlencoded" the same way, too. I've tested this also in Konqueror to make sure it's not related to some shared KDE component, but in Konqueror this bug doesn't exist.