Is there a mod that balances leveling in the game? It makes no sense to me that opponents increase in level as you do...what then is the point of leveling up?

There are other leveling mods out there for games with similar leveling issues like Oblivion. In Oblivion terms, when you reach level 15 or so, common bandits are as tough as dragons and carry lots of magical equipment...the mod makes it so enemies still level, but at a much lower rate, making a common bandit a common bandit no matter what level you are.

I have searched but have not found anything like this for KOTOR2. Or am I looking in the wrong places?

Thanks!

K2 has a 'levelling' system but now where near as bad as Oblivion, indeed I think K2 goes to far the other way, My PC by the time of the Jedi Conclave on Dantooine, can easily handle 8 or so dark jedi all on his own some. This is the right place, tho this seems more of a request than anything else, there are rebalance mods out there; e.g. http://knightsoftheoldrepublic.filefront.com/file/K1_and_TSL_Difficulty_Options;77377) hope that helps, and welcome to the forums :)

If you have a look at Filefront, you should find some mods that change the way you level up. I think the majority of them give you extra bonuses according to class and specialisation (like extra feats, powers, skill points, etc...). There are also some mods that give you new Force powers, which can make your life easier and more inventive. Another option would be to download (or edit) custom weapons, armour, robes etc if you don't find those mods attractive, which are far simpler to use, without potentially messing up the game if you have other mods installed.

I suppose the point is to make you become a bit more 'creative' in your combat approach, by keeping your enemies up to level with you, like using different tactics, force powers and party members' unique skills (btw, Atton's 'zombie' skill is essential if you have trouble). There are many tacticts and combinations of NPCs that can make the combat hella easier (or hella tough).

I personally didn't find the combat that challenging, apart from maybe the final battles and the Dantooine Jedi if you start him first as a DS PC. Actually, if you play as a Weapon master or Sith Marauder and your crystal is maxed out, most enemies go down fairly quick after level 20 or so and similarly with a high Charisma/Wisdom Sith Lord and Force Lightning you can take out armies of people.

Good, thanks for the feedback. I'm a longtime RPG-er and I like to make the experience as "realistic" (read "logical") as possible. Oblivion drove me nuts...why does a rat or mudcrab level up just because the opponent they are fighting is tougher? It's not that I want the game to be EASY, and I really hate those "make my character a god" type mods. Just want it to reflect a more real-world progression (as real as you can get while throwing fireballs and drinking magical potions anyway...)

But I hope the KOTOR system is not as bad as Oblivion, like you say. But I'd love a developer to create something like this for KOTOR:

http://jorgeoscuro.googlepages.com/oscuro'soblivionoverhaulreadme)

(If you play Oblivion, get this mod!)