I'm having a different problem. It doesn't start up at all. I tried all fixes and the end result is the same: it will only start if I disable sounds (even on the most vanilla version of the game, without any fixes). If I start it as normal, it only shows the task in the Task Manager without any CPU usage, but no error, no black screen, no crash.
I tried without patches.
I tried with original .exe.
I tried with all Mss32.dll, from KOTOR 1, etc.
I tried in windowed mode and fullscreen.
I tried with "Force Software Sound".
So far, the only thing I haven't tried, is installing Windows XP or 98 as dual boot, but I really don't want to go through all that trouble. If there is no solution, I will still try that.
By the way, KOTOR 1 works without any problems. No crashes, no glitches, nothing. I also installed and launched both games with XPSP2 compatibility. KOTOR 1 doesn't even need that.