Copy the 4.11 open GL driver into the KOTOR2 directory, I had exactly this problem, and it was fixed by the new driver.
Send me a PM if you need a copy of the file, I will host it for the ATI users with this problem.
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I tried doing that and I still get the same problem.. I've also tried almost every driver that ATI has made :D, no luck in that same area.. I got past it, but I made a new game and now I am back at the same place, with the same problem..