What cpu do you have Intel or AMD ?
Early AMD dual cores (and maybe quad cores) had timing issues which could create havoc with certain games.
AMD released an official patch, its on their website.
Who knows, maybe its a steam related problem ?
I have KOTOR (the original retail release) and I played it the first time on a P4 with HT (that simulates multicore) and an ATI card (9800pro !!!) without any problems.
Maybe I should try again on a real quadcore and see how it goes.
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