Well, the Best of PC version of KotOR is 5 PC games in one box, including KotOR 1 which is already patched to the newest version. Since yours doesn't seem to be the Best of PC version of KotOR, you will probably have to patch your game to the most current version for it to work properly. You can find the patch here:
Once you click on this link that takes you to the patch, the download link is at the bottom. It is a self extracting .exe, which means that it should automatically install (with your permission of course) once it is downloaded.