In my .xsession-errors I have: kio (KService*): WARNING: The desktop entry file System/setuptool.desktop has no Name and similarly for control-panel, locale_config, timetool, conf, netcfg and lprngtool. These are presumably for root only, and so are set readable by root only. KDE should silently ignore them, IMHO.
I've fixed this in the KDE CVS tree; it will be fixed as soon as we update. Unfortunately, the current CVS version is somewhat buggy, so this may be a couple of days until that happens.