As a follow up in case anybody else bumps into this thread with the same problem...
My googlefu turned up no clear fix to get autoplay audio cd's working. There are a couple settings in KDE that lead you to believe the functionality is there though.
Found a lot of good information here: http://www.linuxquestions.org/questi...-2-4-a-791192/
Basically, if you pop an audio CD in ignore the KDE popup if you want to listen to it. Open up audacious and find the "Play CD" in the plugins menu. I tried adding a command to the KDE popup menu but that didn't do anything, had to be done manually. MPlayer worked on the command line too. Couldn't get Amarok to work with audio cds whatsoever.