Originally Posted by Bastila's SW Databank entry
Bastila was instrumental in the last great Republic riposte against Darth Malak and Darth Revan, splitting the pair and conquering one of the Sith Lords. The Jedi Council had learned sketchy details about the Sith plot involving the Star Forge, but needed more information in order to stop it. They crafted a devious and controversial plan into which Bastila Shan figured prominently.
The captive Revan underwent a memory wipe, and was given a new identity. This new persona was paired with Bastila Shan in the search for Darth Malak and the Star Forge.
Bastila kept a wary eye on Revan, always alert at signs of the dark side. Such an awareness opened her to the dark side more than she intended. The quest for the Star Forge, which spanned worlds, kept Revan and Bastila working side-by-side, and thrust Bastila into difficult and challenging roles as a Jedi.Source.
Originally Posted by Old Republic Chronicles Part X: Proving Grounds from the old K2 Website
Rather than helping his Master, DARTH MALAK lets the Jedi drag Revan from the throne after attempting a mind-wipe which was only partially successful. Returning to the Council with a comatose Revan, Jedi Masters healed Revan's mind, and implanted a loyal Republic personality.
From what I can see, Kreia's statement that the Jedi wiped his mind and replaced it with a new persona is not a retconn and is referenced in not one, but TWO offical sources, Bastilla even says as much : "What greater weapon is there than to turn your enemy to your cause?"
Originally Posted by Daniel Erikson on the TOR forums
Wow. Great thread. It's fantastic to see all the excitement around the KOTOR lore. There is much that we obviously arenít revealing but I did want to clear up any misconceptions about what I was talking about in the interview.
* Revan and Malak went into deep space and met the Sith Emperor. They were turned and sent back to prepare the way for the return of the true Sith.
* Being Sith and away from the Emperorís direct influence neither Revan nor Malak followed orders exactly as they were supposed to. Then, of course, Malak betrayed Revan.
* The Jedi took in Revan and returned him to the light, though as it was not a natural turn for him when he went dark, there was much they couldnít undo and they decided to remove his memories and hopefully his taint with it. Yes, Revanís return to the light (and his gender as male) are canon.
* Later Revan returned to deep space to confront what he knew was out there but how much he actually remembered and how clearly he remembered it is still a mystery, as are the events that followed. What we do know is that it took hundreds of years for the Sith to re-emerge as originally planned.
This also works fully with TSL, and is along the same lines as the TSL>K1 retconning of Revan's fall.
Kreia says that Revan fell to the darkside only so that he could prepare the Republic for the True Sith invasion. Who wants to bet that Revan, after finding Traya after her fall to the darkside, simply came out and told her "Oh and by the way, I met the Sith Emperor, he wants me to prepare the republic for his invasion, but, hehehehe, I'm NOT going to."
Kreia herself says she doesn't know everything about it, and that she is also not telling you everything.
TSL doesn't **** up KotOR, nor does TOR **** up TSL, both simply add more depth to the previous entry in the franchise.