I put this up a few weeks ago over on WGSF, but didn't think to post it here.
I've edited HUD files and menu backgrounds for Kotor 1 to support widescreen resolutions. Combined with an existing patcher that allows widescreen resolutions to be selected, this makes the game fully playable at most common widescreen resolutions. Unfortunately some lower widescreen resolutions don't work and we will probably never be able to fix those, but any resolution at or above 1440x900 will work.
Instructions and downloads here: WGSF hacks for SW:KOTOR