I just upgraded to kde 4.085 in kde4 factory on opensuse 11.0 and I now have no system sounds. I’ve checked the Notification settings and they are all set to use KDe sound system (which is aRTS I presume). All packages are installed and all worked fine from the latest stable KDE Repository. All other audio works fine as well i.e. Amarok.
Apart from this I love KDe 4.1 beta!!