Version: 3.2.0 (using KDE 3.2.0 RC1, SuSE)
Compiler: gcc version 3.3 20030226 (prerelease) (SuSE Linux)
OS: Linux (i686) release 2.4.20-4GB
When you move a window out of the top of the screen (i.e. the top edge of the window has a negative y-coordinate) and then resize the window using the window border, the window is autoresized so that the window-top aligns with the top screen edge.
Resizing with Alt+RMB still works correctly.
This bug (or feature? Everything that is done better than in Microsoft Windows is in constant danger of being eliminated unfortunately) was introduced in KDE 3.2
The automatic move of the edge that wasn't being resized was a bug. Fixed.