For me KDE 4 fixed the remaining annoying desktop bugs of 3.5. Most important: I use a separate panel for the task manager in the bottom left corner growing up. This frees space on the main panel and gives enough space for window titles. On KDE 3.5, the icons on the desktop move right by the width of this task manager on every login, even though the latter allows windows to cover it. This bug has never been fixed on 3.5.
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