After the upgrade to xdg-utils-1.0.2-r3 and a reboot my KDE3 apps were almost totally broken... One example: when trying to launch kcontrol, I got the following error: kcontrol: WARNING: No K menu group with X-KDE-BaseGroup=settings found ! Defaulting to Settings/ and the K Control Center was totally empty (no entries whatever)... Lots of other errors, too... In short, KDE3 was totally shot. Downgrade to xdg-utils-1.0.2-r2 and a reboot solved the problem!!! (It took me several hours of furious headscratching to figure out the culprit)
although unfortunate, this is a known problem, see bug #264647 *** This bug has been marked as a duplicate of bug 264647 ***