The locations it's searching are based on your install path for KOTOR 1 or KOTOR 2 or both. If in the managed paths area you tell Kotor Tool that the install path is c:\ and not the actual install location then your going to have these issues. Your install path should be more like c:\program files\lucasarts\swkotor2. The above error is either from a incorrect registry entry within your computer for an install path or from you forcing kotor tools paths to an incorrect location.
Working so, we will learn history as a tree knows it; we will climb into shapes printed in the seed; we will become time made visible, years made fragrant; we will make of concentric memory a stem of praise; we will inhabit daylight at a trees own speed; we will be travelers who remain, patriots to this ground.
OMG I only rank 62.13018% geek or a Extreme Geek as it is referred to on the geektest at Geektest