Problem solved for me. It appears I had two swkotor.ini files, one hidden the main directory, thus I couldn't see it, and one in the Compatibility folder. I suddenly had the idea to Cut and Paste the file in the Compatibility folder to the desktop, and the hidden one pops up in the main directory. I run Kotor, and everything's alright now! Thanks, anyway for all the support, guys!
P.S. RH, I'm deeply sorry for the wrong post. Thanks for the move!