Description of problem:
I'm not sure which of kxkb or setxkbmap is the cause, but trying to switch keyboard layouts when using the keyboard shortcut does not work.
I have activated option in kxkb - Switching Options, Switch Policy - Application. Pressing the shortcut will change the keyboard, but kkxb does not change the indication. In result the change is global, not per application, and the bad thing is that indication does not show what layout is currently used.

Version-Release number of selected component (if applicable):
Currently versions are:
kdebase-workspace-4.1.85-4.fc11.i386
xorg-x11-xkb-utils-7.2-7.fc10.i386

How reproducible:
In KDE4 open System Settings, go to Regional & Language and click Kayboard Layout.
Add some layout preferably non latin to see the difference better. I'm using BG layout with phonetic variant. The setxkbmap command shown is:

setxkbmap -model pc104 -layout us,bg -variant basic,phonetic

For switching layouts I'm using from Advanced tab Layout switching option "Alt+Shift change layout", but I guess the standard Alt+Ctrl+K will do the same.

I have to say that pressing kxkb indicator with the mouse works correctly as it is set to policy - application.
There is a problem only when using the shortcut.


Steps to Reproduce:
1. Press keyboard shortcut.
 
Actual results:
kxkb layout does not change the indication, but
the layout is changed globally and it is not clear what layout is currently used unless you type some letters.

Expected results:
kxkb to change layout and change indicator only for the current application.

Additional info:
It's not clear for me what package is the cause, because going to older kdebase-workspace didn't changed anything. I even tried with changing back to older xorg-x11-xkb-utils, but no difference.