There is a misconception out there that kvt and konsole are 'no longer supported' by kde.
The truth is that for Caldera distributions before e2.4, there were some minor configuration errors in the kde 1.1.2 upgrade packages that caused kvt (among other things) to not work as advertised. This may equally apply to other distros.
kde 1.1.2 as supplied on the e2.4 distro has these 'mistakes' corrected. Thus not all 1.1.2's are born equal (it is NOT a 1.1.2 issue, it is the configuration scripts that every distro tailor to suit their needs).
Secondly, as it applies to e2.4 kvt will NOT work as advertised for a different reason. It requires the /dev/pts subsystem which was inadvertently left off in the install process.
Add the following line to /etc/ fstab :
devpts /dev/pts devpts gid=5,mode=620
Then mount it after making the change.