You don't need it in both .profile and .kshrc, the former is used by login shells.. the latter for interactive. (For the most part, a .profile is all you'll normally need..)
When you define something in your profile, you need to 'export' it.
PS1="..."
export PS1
or:
export PS1="..."
After changes, you need to login again... if this doesn't work, please post the relevant section of the files here in [code][/code] tags.
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