I had the same problem on probably a worse graphics card (Intel 945 Chipset, or something like that). Here's what I did:
1- Make sure that you have the 1.0b patch installed (Get it here: http://www.lucasarts.com/support/update/kotor2.html
2- Download and install 3D Analyzer (http://www.tommti-systems.de/go.html...ien/files.html
click the large picture at the top of the page to download).
3- After installation, run 3D Analyzer as administrator (make sure you run as administrator or it will not work properly). Click the "SELECT" button and find your swkotor2.exe file.
4- You'll see a ton of check boxes. Find the section marked "Hardware Limits (cap bits)" and check the "emulate HW TnL caps" box, then hit the "RUN" button.
5- The game should launch now, hopefully without problems. You won't have to run the game through the program again, the settings will save and run normally through the launcher.