I'm playing KotOR 1 and it ran excellently till about 3 days ago, when if I start the game with movies enabled and go through all the movies, the game crashes with a problem in binkw32.dll. I'll try to get the error details, but the game crashes back to desktop after like, 5-7 seconds of the error. The game becomes okay if I disable movies, but the game crashes back to desktop randomly, with an error in swkotor.exe. Two examples:
1. I was at the rancor place and I put the grenade and the odor in the corpse pile and the screen went black for the cutscene. When I quit the "Give/Get" box, the game crashed.
2. I was giving Carth an ion blaster and the game decided to crash to desktop.
The game also crashes more frequently in loading screens.

I have the latest patch, and I tried to get another copy of the dll file, but it was incompatible. I tried copying binkw32.dll from other games such as SWAT 4 and Republic Commando, but the older error persists. Also, SWAT 4, Deus Ex: Invisible War etc. run their bink files very well, only a little jerkily and some sound blanks, but no crashes.
The game was running perfectly before the incident, so I don't think it's any hardware problem, but still:

Windows XP Home Edition w/ Service Pack 2
Pentium 3 1.0 Ghz
nVidia GeForce FX 5200 w/ 128 MB VRAM (with latest drivers)
Intel 815 chipset motherboard
512 MB RAM
Samsung 40X CD-ReWriter (Why am I giving this?)

EDIT: Tried reinstall, but fruitless. It doesn't work even at 800X600@60Hz! Need some serious help now.

well, if it crashes again, write down the error code that comes with it. then go to Google (www.google.com) and put the error code in followed by 'binkw32.dll'. this should give you some better documentation on what's happening as well as a fix to your exact problem.

hope that helps. :)