It seems that this was a POC in KDE 3.5 but now with KDE 4 it may just be impossible. Using the KDE 3.5 xorg.conf that worked it just gives a black screen on the second monitor. I can move the mouse there but it does nothing. Is it really true that KDE4 cannot do this simple feature?
/etc/X11# cat xorg.conf
# nvidia-settings: X configuration file generated by nvidia-settings
# nvidia-settings: version 1.0 (buildd@rothera) Mon Oct 13 14:53:48 UTC 2008
# nvidia-xconfig: X configuration file generated by nvidia-xconfig
# nvidia-xconfig: version 1.0 (buildmeister@builder63) Wed Oct 1 15:09:35 PDT 2008
Section "ServerLayout"
Identifier "Layout0"
Screen 0 "Screen0" 0 1200
Screen 1 "Screen1" Above "Screen0"
InputDevice "Keyboard0" "CoreKeyboard"
InputDevice "Mouse0" "CorePointer"
EndSection
Section "Files"
EndSection
Section "Module"
Load "dbe"
Load "extmod"
Load "type1"
Load "freetype"
Load "glx"
EndSection
Section "ServerFlags"
Option "Xinerama" "0"
EndSection
Section "InputDevice"
# generated from default
Identifier "Mouse0"
Driver "mouse"
Option "Protocol" "auto"
Option "Device" "/dev/psaux"
Option "Emulate3Buttons" "no"
Option "ZAxisMapping" "4 5"
EndSection
Section "InputDevice"
# generated from default
Identifier "Keyboard0"
Driver "kbd"
EndSection
Section "Monitor"
Identifier "Monitor0"
VendorName "Unknown"
ModelName "ViewSonic VX2262wm"
HorizSync 24.0 - 83.0
VertRefresh 50.0 - 76.0
ModeLine "1680x1050@52" 147.14 1680 1784 1968 2256 1050 1051 1054 1087 -hsync +vsync
Option "DPMS"
EndSection
Section "Monitor"
Identifier "Monitor1"
VendorName "Unknown"
ModelName "CRT-1"
HorizSync 30.0 - 95.0
VertRefresh 50.0 - 160.0
Modeline "1600x1200@60" 160.96 1600 1704 1880 2160 1200 1201 1204 1242-HSync +Vsync
Option "DPMS"
EndSection
Section "Device"
Identifier "Device0"
Driver "nvidia"
VendorName "NVIDIA Corporation"
BoardName "GeForce 9600 GT"
BusID "PCI:1:0:0"
Screen 0
EndSection
Section "Device"
Identifier "Device1"
Driver "nvidia"
VendorName "NVIDIA Corporation"
BoardName "GeForce 9600 GT"
BusID "PCI:1:0:0"
Screen 1
EndSection
Section "Screen"
Identifier "Screen0"
Device "Device0"
Monitor "Monitor0"
DefaultDepth 24
SubSection "Display"
Depth 24
Modes "1680x1050"
EndSubSection
EndSection
Section "Screen"
Identifier "Screen1"
Device "Device1"
Monitor "Monitor1"
DefaultDepth 24
SubSection "Display"
Depth 24
Modes "1600x1200"
EndSubSection
EndSection
# nvidia-settings: X configuration file generated by nvidia-settings
# nvidia-settings: version 1.0 (buildd@rothera) Mon Oct 13 14:53:48 UTC 2008
# nvidia-xconfig: X configuration file generated by nvidia-xconfig
# nvidia-xconfig: version 1.0 (buildmeister@builder63) Wed Oct 1 15:09:35 PDT 2008
Section "ServerLayout"
Identifier "Layout0"
Screen 0 "Screen0" 0 1200
Screen 1 "Screen1" Above "Screen0"
InputDevice "Keyboard0" "CoreKeyboard"
InputDevice "Mouse0" "CorePointer"
EndSection
Section "Files"
EndSection
Section "Module"
Load "dbe"
Load "extmod"
Load "type1"
Load "freetype"
Load "glx"
EndSection
Section "ServerFlags"
Option "Xinerama" "0"
EndSection
Section "InputDevice"
# generated from default
Identifier "Mouse0"
Driver "mouse"
Option "Protocol" "auto"
Option "Device" "/dev/psaux"
Option "Emulate3Buttons" "no"
Option "ZAxisMapping" "4 5"
EndSection
Section "InputDevice"
# generated from default
Identifier "Keyboard0"
Driver "kbd"
EndSection
Section "Monitor"
Identifier "Monitor0"
VendorName "Unknown"
ModelName "ViewSonic VX2262wm"
HorizSync 24.0 - 83.0
VertRefresh 50.0 - 76.0
ModeLine "1680x1050@52" 147.14 1680 1784 1968 2256 1050 1051 1054 1087 -hsync +vsync
Option "DPMS"
EndSection
Section "Monitor"
Identifier "Monitor1"
VendorName "Unknown"
ModelName "CRT-1"
HorizSync 30.0 - 95.0
VertRefresh 50.0 - 160.0
Modeline "1600x1200@60" 160.96 1600 1704 1880 2160 1200 1201 1204 1242-HSync +Vsync
Option "DPMS"
EndSection
Section "Device"
Identifier "Device0"
Driver "nvidia"
VendorName "NVIDIA Corporation"
BoardName "GeForce 9600 GT"
BusID "PCI:1:0:0"
Screen 0
EndSection
Section "Device"
Identifier "Device1"
Driver "nvidia"
VendorName "NVIDIA Corporation"
BoardName "GeForce 9600 GT"
BusID "PCI:1:0:0"
Screen 1
EndSection
Section "Screen"
Identifier "Screen0"
Device "Device0"
Monitor "Monitor0"
DefaultDepth 24
SubSection "Display"
Depth 24
Modes "1680x1050"
EndSubSection
EndSection
Section "Screen"
Identifier "Screen1"
Device "Device1"
Monitor "Monitor1"
DefaultDepth 24
SubSection "Display"
Depth 24
Modes "1600x1200"
EndSubSection
EndSection