Hi for those of you who've tried the mss32.dll solution without luck there's another way that worked (at least for me). Note that I have 32bit Vista with a NVIDIA 9600M GT graphic card just for refr. Also my Kotor 2 is unpatched and I have installed the game as described
here with the "new" mss32.dll.
What I did was that i downloaded a no cd crack for Kotor 2 (

) and popped it in my Kotor 2 folder, replacing the old swkotor2.exe. Now you just run the .exe in xp compability mode and admin mode on. Works for me so I thought I'd share.