Same here. I've been wondering what happen myself. I went ahead and tried out some more distributions, including SuSE to see if the sound problems were persistent. Sure enough, all KDE's with 3.5.0 had the same problem. Glad to hear it's fixed. Hope to see a KDE 3.5.1 anyday now, with CVS upgrades.
Another little problem I've noticed is with Kopete - using the Yahoo and MSN webcam options - the program will crash once in a while. Other then these two errors noted, KDE 3.5 is fantastic.