Install the game according to the instructions in the second post
of this thread
1) DO NOT overwrite the swkotor.exe when replacing it with the one from SecuROM. Rename it instead, because you might need it later. If it doesn't work, either, your only recourse is to contact SecuROM using the link provided in that post and request a new swkotor.exe.
2) As far as setting the flipping policy to "blit" in your Intel graphics driver control panel: I don't think this will apply to you because the option most likely won't be available if you have the newest drivers. You will still need the Dantooine lag fix, though.