With XFree86-xdm-4.2.99.3-20021230.3 (and .4) when I am login in a window pops up telling me it cannot start kdeinit. After hitting OK button the desktop starts up but there are no sounds. When I do ps -ef I do see kdeinit processes running, so whatever this is affecting arts. Everything works fine with XFree86-xdm-4.2.99.3-20021230.0. I am not sure whether this is a XFree86 or KDE problem, if KDE please reassign.
Reassigning to kdebase first in case this is an arts issue, but it sounds like a kernel sound driver issue perhaps. Hard to say.
Whatever it was, it is resolved using the kde/kernel/XFree86(.6). Closing.