I don't thing you have to go through the effort of setting up a directory (though
you might want to if you use it alot).. try just typing
sftp://remote_user@remote_IP/directory into konqueror with FUSE.. enter
password when prompted, and open/edit files, or browse directories as if they
are local.. I believe this also works from within an open dialog in most KDE
apps.

Also, ctrl-shift-L in konqueror will split the window.. choose a local directory
if you do want to drag and drop files like a standard ftp client; ctrl-shift-R
returns you to a single pane window.