The OP shouldn't have to reinstall. Looks like he/she did everything correctly. Just a couple of things need to be done and the game should run fine.
First is 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.
Second, since the OP has a multi-core CPU and is using XP, he/she is going to have set affinity to a single CPU core every time they 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 (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 to set CPU affinity like this every time you launch the game. Not doing this can cause the game to randomly crash.