Yeah, there are definitely reasons for using a crack with this game other than piracy. The only way to play KotOR 2 at widescreen resolutions higher than 1280x768 is with a crack. Sorry, but you'll just have to use that external drive.
The silver lining - the game supports 1280x768 natively, which is pretty close to your screen's resolution. Just change the width and height values under both [Display Options] and [Graphics Options] in the swkotor2.ini file.
"Mind your wants, 'cause someone wants your mind."