For free recording of in game clips;
http://www.fraps.com/download.php) there will be a little fraps watermark somewhere in the picture and I think you can only record 1 minute long clips.
With regards the miles sound program, I don't know the program to well, however if I recall corretly there should be two modes; there is the sound player mode (for listening to files) and then there is the sound studio for compressing files and changing formats. On the start menu you should see the different icons for these, as for playing of files, its strange that your having these problems. Let me see if I can be of further help, have you gone fully into the individual subfolders e.g.
C:\Program Files\LucasArts\SWKotOR\streamwaves\m03af\brej04
Edit: Good shout from loony636 there, I had forgotten that and it may well proove most usefull for your endevours.
and played the files from there? Was it music or vo you were wanting?
No worries for the quick responce :-), hope it was of some help.