We received an email from someone wanting to change the default log out image of konqi snoozing on the moon. So I put this together for others interested in changing the log out image.
Step one - edit the image and save:

Open an image editor of your choice. Open the file you want to replace the log out image with. Crop it or scale it to the height and width you would like it to appear in the log out dialog. To keep it the same size as the existing image you will want it to be 188 px by 300 px.

Save it as shutdownkonq.png

(If editing is not needed simply rename the image of your choice shutdownkonq.png.You can do this in Konqueror by clicking the right mouse button on the image you would like to use and selecting rename from the dropdown menu.)

Step two - replace the existing image:

Open a *root Konqueror session browse to the directory where you saved the image and copy it. Now browse to the following in the location bar /usr/share/apps/ksmserver/pics/ paste your image in this folder. A pop up dialog will appear titled "File Already Exists" left click on the button that says "Overwrite". If a dialog pops up that saying "Access Denied" you are not running a root session of konqueror.

Step three - give it a test:

Click on the log out selection from the menu or from a right mouse button click on the desktop. The new image should be in place.

*Running any program as root is a security risk and should be done so for the least amount of time as possible.

**Thanks goes out to grahl for the input on this tutorial.