KOTOR is one of the games I'm having trouble with, too. This is not terribly surprising, however, as the game has always had problems, even on the Windows XP (SP2) platform it was designed for.
The Lucas forums have a few threads on KOTOR and KOTOR 2 and the myriad of problems you may or may not be having. I'd recommend checking them out at Link Removed - Invalid URL .
The topics I can remember being covered are:
1) Hyperthreading problem (fixed by changing affinity);
2) Sound problem (both games should use the older mss32.dll file which comes on the original KOTOR install disk);
3) DirectX problem (fixed by a simple DirectX 9.0c intallation);
4) SecuROM problem (patched executeables from SecuROM for both games);
5) On-board sound problem (KOTOR 1 & 2 won't work with on-board sound).
6) Graphics settings problem (ATI and Nvidia have different kinks to work out).
7) Game crashes (e.g. Not being able to get past character creation).
WinXP compatability mode helps, of course.
For me, all it took was the new executeable file (swkotor.exe) from SecuROM and a WinXP SP2 compatible setting. I seem to be doing OK working on all four cores, for now. I have not tried enabling widescreen or playing with mods, yet.
-Khalaq
