I thought that I'd answered this.
Anyway, for some reason, the Dantooine lag fix (Disable Vertex Buffer Objects=1) isn't in your swkotor2.ini file under [Graphics Options]. You're also going to have to disable frame buffer objects, shadows, soft shadows and grass.
Most importantly, "GameVersion=v2.00.424" tells me that your game isn't patched correctly. Since you applied the UK patches and got the "insert play disk" message, I'm willing to bet that you have the US version of the game, so try reinstalling again (I know:
), apply the US patch this time, replace the swkotor2.exe with the one that was updated by SecuROM and see if it works then.