@Haggai:
Like Karl said, you need to enable the Latin layout in Hebrew as well. If you use KDE 3.x it is done here (translated from Hebrew):
Kcontrol -> Localization and Disability -> Keyboard layouts -> Now select the Israeli layout by clicking on the relevant line under Active Layouts (פריסות פעילות) -> Check the "Include Latin layout (כולל פריסה לטינית)" button.
@Haggai:
Like Karl said, you need to enable the Latin layout in Hebrew as well. If you use KDE 3.x it is done here (translated from Hebrew):
Kcontrol -> Localization and Disability -> Keyboard layouts -> Now select the Israeli layout by clicking on the relevant line under Active Layouts (פריסות פעילות) -> Check the "Include Latin layout (כולל פריסה לטינית)" button.