Using openSUSE 11.1 (i686, 32-bit)

I have just upgraded to KDE 4.3.1 (Rel 163) a couple of days back. On enabling the desktop folder view [Pict 1], I am getting the following errors:

- Any folder on the desktop opens with Gwenview on clicking it (should open w/ Dolphin or Konqueror, by default)

- Both, Konqueror & Dolphin show all the application files as files with the [.dektop] extension. [Pict 2]

- On trying to run any application on the desktop, it gives an error message, which shows the file as a <.desktop> file and says that the file should be executable to run (checking properties of the file, all are executable, as they are applications). This happens with all apps on desktop: Firefox, Starter, etc.
(Images [3], [4] - these are for Firefox, but happens with any app/shortcut on the desktop).
However, the apps can be run from the Kicker Menu.

Any suggestions to fix the problem, because otherwise KDE 4.3.1 seems stable and functional.