While i don't have your problem with KOTOR, i had a similar one with a few old games, texture appeared and disappeared, becoming essentially transparent
If any of you have an ATI card try this options in the CCC:
- Antialiasing controlled by application
- Antialiasing method "Multisampling", the lower possible option
- Disable Morphological Filtering
If the problem persist, try to change the Antialiang option, usually it's that one preventing texture to be rendered correctly, especially in old games