I had the same problem and solved it! First I should tell you a bit about what happened:
I have a Dell laptop, Core i-7, Windows 7 Pro 64bit with an integrated Intel graphics card (Intel HD Graphics 3000 ?)
Back around August 2013, I installed SW KOTOR2 from Steam. I started playing and everything was great. So we now know for a fact that the game works with Intel's integrated chipsets and that it does run on Win 7 Pro 64b... Now a couple of weeks later, in October 2013, I decided to install Mass Effect, also from Steam.
Mass Effect 1 installs smoothly and the game launches BUT ! The game starts crashing almost randomly, seemingly more on the menu screen. Always I get a little window on my desktop telling me "This program needs to close... APPCRASH, etc." I also remeber that message mentionning a .dll file, possibly a x64 driver. So I then had a problem with Mass Effect 1.
Trying to solve this Mass Effect 1 application crash, I finally end up on Intel's website to use their online "Check your system for updates". I do that and it does find a newer graphics adapter/driver, installs automatically and reboots. Once booted back up, I try Mass Effect and no more crashes since then !
But then I wanted to play KOTOR2 again. So I launch as usual from Steam and that's when I got the message in this forum, same thing, can't play anything as the error message appears right after the Obsidian logo :
APPCRASH ... module : ig4icd32.dll.
So now Mass Effect was fine but SW KOTOR2 was broken So I searched my system for ig4icd32.dll and I found 2 versions. One that was modified recently, about the same time that I updated my drivers and the other that dated from a few years back. So I backed up the most current one and in it's place (C:\Windows\SysWOW64) I put the older one. So that's it, now both Mass Effect works (it hasn't crashed yet, I'll update the message if it does) and SW KOTOR2 also works ! Below are the filesize of ig4icd32.dll
Filename Size Version
ig4icd32.dll (15,051,368 bytes) 8.17.12.6883 // Use this version for Star Wars KOTOR 2 !
ig4icd32.dll (10,812,416 bytes) 9.17.10.3223 // Use this version if you have any problems with ME1.
I hope this helps folks !