diff --git a/kdecore/config/kconfig.cpp b/kdecore/config/kconfig.cpp
--- a/kdecore/config/kconfig.cpp
+++ b/kdecore/config/kconfig.cpp
@@ -160,37 +160,7 @@
     int nDollarPos = aValue.indexOf( QLatin1Char('$') );
     while( nDollarPos != -1 && nDollarPos+1 < aValue.length()) {
         // there is at least one $
-        if( aValue[nDollarPos+1] == QLatin1Char('(') ) {
-            int nEndPos = nDollarPos+1;
-            // the next character is not $
-            while ( (nEndPos <= aValue.length()) && (aValue[nEndPos]!=QLatin1Char(')')) )
-                nEndPos++;
-            nEndPos++;
-            QString cmd = aValue.mid( nDollarPos+2, nEndPos-nDollarPos-3 );
-
-            QString result;
-            QByteArray oldpath = qgetenv( "PATH" );
-            QByteArray newpath;
-            if (KGlobal::hasMainComponent()) {
-                newpath = QFile::encodeName(KGlobal::dirs()->resourceDirs("exe").join(QChar::fromLatin1(KPATH_SEPARATOR)));
-                if (!newpath.isEmpty() && !oldpath.isEmpty())
-                    newpath += KPATH_SEPARATOR;
-            }
-            newpath += oldpath;
-            setenv( "PATH", newpath, 1/*overwrite*/ );
-// FIXME: wince does not have pipes
-#ifndef _WIN32_WCE
-            FILE *fs = popen(QFile::encodeName(cmd).data(), "r");
-            if (fs) {
-                QTextStream ts(fs, QIODevice::ReadOnly);
-                result = ts.readAll().trimmed();
-                pclose(fs);
-            }
-#endif
-            setenv( "PATH", oldpath, 1/*overwrite*/ );
-            aValue.replace( nDollarPos, nEndPos-nDollarPos, result );
-            nDollarPos += result.length();
-        } else if( aValue[nDollarPos+1] != QLatin1Char('$') ) {
+        if( aValue[nDollarPos+1] != QLatin1Char('$') ) {
             int nEndPos = nDollarPos+1;
             // the next character is not $
             QString aVarName;
diff --git a/kdecore/doc/README.kiosk b/kdecore/doc/README.kiosk
--- a/kdecore/doc/README.kiosk
+++ b/kdecore/doc/README.kiosk
@@ -640,18 +640,6 @@
 Name[$ei]=${USER}
 
 
-Shell Commands in KDE config files.
-===================================
-
-Since KDE-3.1 arbitrary entries in configuration files can contain shell 
-commands. This way the value of a configuration entry can be determined
-dynamically at runtime. In order to use this the entry must be marked 
-with [$e]. 
-
-Example:
-Host[$e]=$(hostname)
-
-
 KDE Kiosk Application API
 ==========================
 
diff --git a/kdecore/tests/kconfigtest.cpp b/kdecore/tests/kconfigtest.cpp
--- a/kdecore/tests/kconfigtest.cpp
+++ b/kdecore/tests/kconfigtest.cpp
@@ -479,12 +479,8 @@
   QCOMPARE(group.readPathEntry("withBraces", QString()), QString("file://" + HOMEPATH) );
   QVERIFY(group.hasKey("URL"));
   QCOMPARE(group.readEntry("URL", QString()), QString("file://" + HOMEPATH) );
-#if !defined(Q_OS_WIN32) && !defined(Q_OS_MAC)
-  // I don't know if this will work on windows
-  // This test hangs on OS X
   QVERIFY(group.hasKey("hostname"));
-  QCOMPARE(group.readEntry("hostname", QString()), QHostInfo::localHostName());
-#endif
+  QCOMPARE(group.readEntry("hostname", QString()), QString("(hostname)")); // the $ got removed because empty var name
   QVERIFY(group.hasKey("noeol"));
   QCOMPARE(group.readEntry("noeol", QString()), QString("foo"));
 }