Well, I could go through all the usual stuff about rolling back to non-beta
drivers and running in safe mode, but I'm going to assume you've already
tried all the usual stuff.
Like I said, the above fix worked for me, but I did have to do something
else to get KOTOR2 running. I have no idea if it's related to your problem
with KOTOR1, but it's worth a shot. To get KOTOR2 to work, I had to replace
the Mss32.dll file in it's main directory with an older one that you can
download at
http://files.filefront.com/Mss32dll/;6695046;;/fileinfo.html
Kind of a shot in the dark since that was my fix for 2, not 1, but it's the
only thing I can think of. My computer expertise stops at the GUI level, so
if there's some sort of inherent incompatibility with a driver or card, I
can't really help you.