Same here, except that the bug did *not* go away with a reinstall.
Note to future reporters: please run the attached PyKDE4 script on your
system to check that KGlobalSettings.desktopPath() really returns
/home/'usr'/Desktop. In my case it does, which means that the problem
actually lies inside kdesktop.
** Changed in: ubuntu
Status: Fix Released => Confirmed
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Kdesktop in Kubuntu Hardy shows / icons rather than icons from
/home/'usr'/Desktop
https://bugs.launchpad.net/bugs/175982
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