I was wondering is to how I would play the game in 1920 X 1080 (without foreign executables please).
Doesn't matter if it would stretch the display, i'd rather have it in a stretched 1920 X 1080 than 800 x 600 display resolution

These are the instructions I followed, and it works perfectly -- see attached image. You will need to run an executable, but only for the patch, after that just run the game as normal.

No Matter what I do, it reverts back to an even smaller Screen Resolution

Then you're not doing it right. Follow the instructions to the letter.

Worked like a charm. Thanks a lot.

As it did work, I studied it again and found the source of my error and I've not responded since because I've been playing the game over again.

Another vote for the solution given by Hickory above (and originally posted by MisterBlack). I've just played KOTOR 1 in widescreen (1440x900) and it worked perfectly. However, as already stated, you must follow the steps EXACTLY or else it won't work.