I have a solution that has worked for me that keeps Grass Enabled, I've put this up on the Steam Forums after I found it worked and it works with this GOG version too. So some Copying and Pasting and a bit of Editing later ...
Visit this page: humus.name/index.php?page=Cool
• Download "GLOverride" (downloads as a ZIP file)
• Extract/Copy "opengl32.ini" and "opengl32.dll" into the Game's main executable folder (containing "swkotor.exe", in "C:\GOG Games\Star Wars - KotOR" by default)
• Edit the "opengl32.ini" and enable (change from 0 to 1) "ForceAlphaToCoverage"
• Enjoy proper Standing Grass Textures (after re-enabling Grass of course)
Comparison Pictues (From Steam version, but appears the same on GOG version)
There is one side effect, textures that have transparency will have dithering, it will make some thing look strange like causing a noticeable "flicker/shimmer" on highlighted options in the main menus but it's fairly minor in my opinion. And if anyone is curious, it seems to be related to the problem in this article I found while trying to fix this problem. computersciencelab.com/Direct3DTut1.htm
Post edited October 31, 2014 by TruthUnknown