"Are you using the same 4.11atioglxx downloaded from Ati website?"
Yes and various mirrors, I have only seen orginal ATI 4.11s and the DNA 4.11s.
"So I try various versions of atioglxx for glows. 4.11atioglxx doesn't give any glow for me. I dunno why."
You might check to make sure you have a line in your, swkotor2.ini
Darth333 mentioned, Disable Vertex Buffer Objects= , except make sure it is set to 0 not 1.
If it is set to 1 it turns off glow, which is what sounds like is happening.
Any hoo, just a thought.