Check your /usr/sbin/rcxdm. Starting at line 43 mine looks like this
case "$DISPLAYMANAGER" in kdm|kde|KDM|KDE) DISPLAYMANAGER=/opt/kde3/bin/kdm
Okay that one pointed to kde2 although according to ps -aux the running kdm was the one from kde3, changed now.
If you are running /opt/kde3/bin/kdm you have to add two lines in /etc/X11/xdm/Xsetup at in order to allow kdm to set the background
------------------snip---------------------------
kde3root=/opt/kde3/bin #Add this at line 52 ---------------------snip---------------------
for p in ${kde1root}/kdm \ ${kde2root}/kdm \ ${kde3root}/kdm #Add this line at line 64 -------------------snip------------------------
No need to reboot, just run "rcxdm restart".
I did that and it is up now, the background indeed takes the setting from the control panel and is defined in /opt/kde3/share/config/kdm/kdmrc However, the Wallpaper that is defined there, doesnot show up: [Desktop0] BackgroundMode=Flat BlendBalance=100 BlendMode=NoBlending ChangeInterval=60 Color1=241,234,18 Color2=192,192,192 CurrentWallpaper=0 LastChange=0 MinOptimizationDepth=1 MultiWallpaperMode=NoMulti Pattern= Program= ReverseBlending=false UseSHM=false Wallpaper=/home/chris/pics/p1024.jpeg WallpaperList= WallpaperMode=Centred strange isn't it ? thanks for the help so far ! C. PS. the liquid theme looks extremly cool !