I've just verified it in Debian lenny using VirtualBox.
The spell checking works perfectly in Debian lenny with kile 1:1.9.3-4, but it doesn't work in Ubuntu 7.10 gutsy with the same version of kile.
Then I think this is an Ubuntu-related bug.
I hope this could help you to fix this bug as soon as possible.
I've just verified it in Debian lenny using VirtualBox.
The spell checking works perfectly in Debian lenny with kile 1:1.9.3-4, but it doesn't work in Ubuntu 7.10 gutsy with the same version of kile.
Then I think this is an Ubuntu-related bug.
I hope this could help you to fix this bug as soon as possible.