Interesting
I too have kde-3.1.94 fedora rpms installed on my redhat-9.0 machine, but never noticed it. After I read your post, I checked my kcontrol and saw the same situation. Unable to select a splash screen. Anywayz, kde-3.2 is out (fedora rpms available).. let us see if this is fixed in the new one.
For the time being, if you have your splash screen (the group photo) in the proper setup (I mean, if it is a valid splash screen theme - check out /usr/share/apps/ksplash/Themes/BlueCurve/), then unpack the files into ~/.kde/share/apps/ksplash/Themes/your_splash/
Then, edit ~/.kde/share/config/ksplashrc to include these two lines:
---------begin-----------
[KSplash]
Theme=your_splash
-----------end-----------