yes, that looks horrible.
i have seen this before with conky, it's basically overwriting its own output.
but it could also be the kde desktop manager doing that, idk.
the second thing definitely has to do with the desktop manager (KDE).
all you can do is play with conky config settings, and possibly also KDE's settings.
you need to look at the own_window_... config options mostly, and play with those.
all in all, conky doesn't play too well with desktop managers.