kmail doesn't respect cursor position in templates

I have a similar problem where the cursor can not be placed on the top line, I wish quoted text to appear at the end. In my case the cursor always appears on the second line down with %CURSOR defined at the top or left out completely.

I can confirm this problem. It's quite annoying. In fact I can't get the cursor to go ANYWHERE but the first line. I want to have the cursor at the bottom of the quoted message by default but it does NOT work.

Update: The bug only manifests itself if "Automatically insert signature" is checked in KMail preferences. Otherwise the templates honor cursor position. For some reason, while inserting the signature, the cursor position is reset and it is returned to the beginning of the first line, irrespective of %CURSOR in the template.

This bug was nominated for Gutsy but does currently not qualify for a 7.10 stable release update (SRU) and the nomination is therefore declined.
According the the SRU policy, the fix should already be deployed and tested in the current development version before an update to the stable releases will be considered. With 7.10 now released, that policy applies to this bug. See: https://wiki.ubuntu.com/StableReleaseUpdates .
The bug is not being closed as work will continue on fixing it for the next release, Hardy Heron (8.04). If the state of this bug should change such that it qualifies for the SRU process, please contact the person who originally declined it and ask them to re-evaluate it. To help improve the state of this bug see: https://wiki.ubuntu.com/Bugs/HowToTriage .

This bug is fixed in KDE4.