Hello,
First of all kde3 is deprecated for years now. Also keep in mind that KDE doesn't support it anymore. So it has been a lot of time since someone has install it... So please try to install a new version of KDE. KDE 4.6.4 will work on lion. But anyway, from the error log i see that lion cannot find the "startkde", so please check if it exists on the current directory, also create a ".xinitrc" into your home folder and add "exec startkde". IMO, it should be easier to install a linux distro which ships with KDE on your mac.
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