I am using multiple profiles. When I switch from one profile to the other K-Meleon is retaining the preferences from the first profile - for example, the same bookmarks, rebar settings etc.
Other than that, it is great browser and it is now my browser of choice from now on.
I noticed the same thing that you did,so I went to default only,but 0.5 is so much better than before.Not surprisingly,it carries along some Mozilla's booboos.
I have yet to figure out what to do with Explorer's favorites.