I had also that problem (just yesterday), you'll have to make an override foler. Like what's mine: \E\games\d\override
(That "d" is what I use as KotOR II, but I'm not sure of will it work in KotOR I)
Peace is a lie, there is only passion
through passion, I gain strength,
through strength, I gain power,
through power, I gain victory,
through victory, my chains are broken.
The Force shall free me.