Specular Sampling Glitch
We thought it was with Fresnel, but it turns out that Ashikminh shader also has the issue.
Here's a test scene that reliably reproduces the error. I think it's important enough to mention, as I think fixing it will be to succeed in killing a major "bug" in KT.

THE PROBLEM:
The RED PLASTIC CUBE is supposed to be a FLAT PLASTIC.
it's shininess is set to 10, but it's JUST AS SHINY as the SHINY PLASTIC yellow ball, which is set to 180 shininess.
When you change the RENDER SETTINGS from Lower settings to Higher settings, strange things start to happen with the specular reflections in the rendering. This effect is more noticeable or exaggerated when using the "patrick recommended standard plastic material" and it shows up as a circular effect. However, Chris determined that it's not due to the fresnel, it's just an issue with the specular sampling. I discovered when creating settings for Twilight that changing sampling DRASTICALLY effects results (and severely negatively effects render times)
Of course the sampling issue shows up in the shiny yellow plastic as well.