Ive also posted this on the Lucas Arts forum with a link back here with a little more help for people who havent used the save editor before (w00t)
Okay boys and girls all of you who have been having problems with the forfit bug on the swoop races I have found a solution and it works. Get your self a copy of the KOTOR 1&2 save game editor (KSE) latest version is 309 try here
http://www.lucasforums.com/showthread.php?s=&threadid=143413
now I recomend you do a backup of your saves directory incase you kill your save.
load kse and select your most recent save click on the little + to expand the menu
next click the + next to globals
next click the + next to Booleans
now towards the end of this list you will find "FORFEIT_SWOOPRACE:1" click this
now on the menu change from yes to no click apply and then commit changes
AND WOOOOOHOOOOO you can now finish the swoop races.