You need to EXTRACT all the files in the .zip file to your desktop. When you go to your desktop, you should see a couple of folders, one called 'tslpatchdata' and an .exe file. Double click the .exe and find your KotOR ROOT directory, not the override, and hit OK or whatever. It should work then.
(Credit to Chainz.2da for telling me this)
"Education is what remains after one has forgotten everything he learned in school." - Albert Einstein