The reason is that it didn't work. It is a BUG and to change the theme You need to use YaST for this. Just unpack the theme to /usr/share/kde4/apps/kdm/themes and then adjust it with YaST in sysconfig-->> Desktop -->> Display Manager -->>DISPLAYMANAGER_KDM_THEME.
P.S. Watch the theme's folder name as it has to be the same including capital letters. Have phun
P.S.2 Just reread
You adjust everything in YaST
What sort of settings you'd like to adjust?