To make the game playable (normal framerate) try the following in your swkotor2.ini under [Graphic Options]:
Disable Vertex Buffer Objects=1
Speeds things up considerably here on a 9550
After running SWKOTOR2 for 1 minute my 9700 PRO also gave up. All it does now is display artifacts and vertical purple stripes accross my screen. In dos mode I see a pattern of stripes on my screen (