configuring imap in kmail

Hi
I've just joined the list born out of the frustration of trying to configure 
imap in kmail.
My mail directory is called "mail" and lives in my home area. I've changed the 
namedspace entry to "~/mail". However, new folders seem to get created on my 
home area and not in the subdirectory mail. Does anyone know how to make 
kmail behave properly or is this normal behaviour for kmail?  How do I 
confine the activities of kmail to the ~/mail area?  I would be very grateful 
if someone could give me some pointer as I find this all very frustrating and 
somehow I must be overlooking something somewhere in the documentation.

Thanks a million
Eddie