The newer Intel graphics drivers don't have that option.
You need to go into swkotor2.ini and set Fullscreen=1 under both [Display Options] and [Graphics Options]. You also need to put the Dantooine lag fix (Disable Vertex Buffer Objects=1) under [Graphics Options].
"They should rename the team to the Washington Government Sucks. Put Obama on the helmet. Line the entire walls of the stadium with the actual text of the ACA.
Fix their home team score on the board to the debt clock, they can win every game 17,000,000,000,000 to 24. Losing team gets taxed by the IRS 100%, then droned."