Well I've been experimenting with both KOTORs. On 4.2 we ATI users get the full range of effects inc Light bloom. This is missing in later versions. However, with 4.2, the game hangs after movies (not in game cutscenes). Later drivers don't offer that much of a performance increase over the latest for no. 2 (they do for one) but with the later drivers on both ames the light bloom effect is missing.
I think theres a link here showing bloom effect missing on the sabers but its not very profound here, when the effect is in the game during play you will notice a difference. (Its in Stoffe's post)
http://swforums.bioware.com/viewtopic.html...=nvidia%20bloom
Whats really needed is Obsidian to contact ATI requesting the next catalysts to enable the full range of effects again for KOTOR 1 and 2 and sort out the performance issues. Its NOT the game that has the trouble it is the catalyst drivers.
I've mailed ATI telling them of these problems so they hopefully will take note - everyone else with problems should mail them too, so something is done.