Have you tried that fix? Get the 4.11 Catalyst drivers, open the file you downloaded in Winzip (or something similar). Extract the atioglxx.dl_ file into the SWKotOR2 directory on your hard drive (the installation directory). Go to Start->Run, type in 'cmd'. At the command prompt, change the directory to your game directory (or use the paths in the following command) then type: 'expand atioglxx.dl_ atioglxx.dll'. That fixes things for me (I was using a 9600XT, btw).
<{POST_SNAPBACK}>
Thanx i will try and post back!