I guess the report is about selectio files/translations.  If it is a problem
with yast translations, please reassign the bug.

Which language is this?

Choices for Germans usually are German or English. As the descriptions are in
English, it must be German ;-)

english: GNOME System / All of KDE
german translation: GNOME-System / KDE komplett

What did you see exactly in Beta3?

No feedback by the reporter. Anyway, I can't reproduce this with Beta4. 

To clarify my description: In beta3 the screen titled "Bildschirm-Einstellungen"
(a poor phrase anyway IMHO) has the choices "DKE", "GNOME", and "Other". Below
those chices is English (not German) text sayinbg "KDE is a powerful...", "GNOME
is a powerful...".

This is a different dialog in YaST2 for choosing the basic selections, which 
is not related to any selection translations. 
 
- KDE 
- GNOME 
- Others --> Minimal Graphic 
             Textmode 
              

The texts are in the pot-file generated. They went for the 2nd translation 
round (were added shortly before beta2). Karl, could you, please, check it? 

It's in:

grep "KDE is a powerful" pot/pot/*.pot
pot/pot/packager.pot:"KDE is a powerful and intuitive desktop\n"

Thus I'd expect it translated in beta4 (probably already tracked by Kerry's team).

yes included in beta 4 :

msgid ""
"KDE is a powerful and intuitive desktop\n"
"environment that uses Kontact as its mailer\n"
"and Konqueror as its browser and file manager."
msgstr ""
"KDE ist eine leistungsstarke und intuitive Desktop-\n"
"Umgebung, in der Kontact als E-Mail-Programm\n"
"und Konqueror als Browser und\n"
"Dateiverwaltungsprogramm verwendet wird."

Fixed on Beta4.