Spoilers below, but as the other guy said, they're necessary to explain my problem.
I'm 35+ hours into the game, playing a dark side character. I've tracked down and killed every Jedi Master and am getting ready to go into the endgame portion. I headed back to Dantooine where I'm supposed to meet "the last of the Jedi Counsel" (Artiss, I assume). I walk into the rebuilt Jedi Academy, go through the cutscene with Kiera. When my characters walks into the next room and the next cutsceen begins, the game freezes! $&^*%^@!!!!
So, I reloaded my last save and continue until I reach the same point, and the game freezes in EXACTLY THE SAME FRICKIN' PLACE! I duplicated this error five times in a row, even went back further and used older save files, but to no avail. This is the first time the game has locked up on me. Tomorrow I will try and exchange the disk for a new one, but regardless, this is pretty frickin' lame. KOTOR 1 never locked up on me. This is the same game engine, so why would KOTOR 2 lock up? My Xbox is also a launch system. If the hard drive is to blame, then it looks like I lost nearly 40 hours of gameplay.
The entire game has been glitchy, with broken quests, looping NPC conversations, horrible collision detection, you name it. If any of developers read this post, know that this has seriously ruined the game for me. Even if I was able to complete the game on a friend's Xbox, that's still 40 hours down the drain! I will not be buying any other Obsidian games, and that's sad, because I was really rooting for you guys. Other than the game ruining freeze and a half dozen broken quests, I actually liked KOTOR 2 quite a bit. Sad sad day.
If any one else has encountered this problem, please respond. I'm definately open to suggestions.