This is just a guess, but your problem might be a CPU affinity issue. The KotOR games were meant to run on single-core CPUs.
Since you have a multi-core CPU and you're using XP, you're going to have set affinity to a single CPU core every time you launch the game. How I do it is to open Task Manager (right-click on the Taskbar at the bottom of Windows' desktop and select "Task Manager") and click on the "Processes" tab. Check the "Show processes for all users" box if it isn't already and then launch the game. Once you get to the game's main menu, hit the Windows key to get back to the desktop and look for the game's executable (swkotor.exe/swkotor2.exe) in the Task Manager under the "Processes" tab. When you find it, right click on it, select "set affinity" and uncheck every box but "CPU 0" and hit "OK". Once you've done that, just hit the game's icon in the Taskbar and you should be good to go. Remember that you'll have to set CPU affinity like this every time you launch the game. Not doing this can cause the game to randomly crash.
You should also do the Dantooine lag fix:
Originally Posted by stingerhs
- First, figure out where the .ini is installed. Default is "C:\Program Files\Lucasarts\swkotor(2)\swkotor(2).ini". If its not in that location, then your going to have to do some searching around on the hard drive a bit.
- When you find it, just double-click on the file to open it in Notepad.
- Scroll down the file until you find the Graphics Options
- Under the last line ("last line" as in the last line of the list of entries under "Graphics Options", NOT the last line of "swkotor(2).ini"), add "Disable Vertex Buffer Objects=1", without the quotes.
- Goto File, then Save.
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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."