Gamefaqs has it listed as a cheat code.
http://www.gamefaqs.com/console/xbox/code/556553.html)
Free Roam Camera
Go to the messages GUI and enter the following code. 'Punch it Chewie' will appear in the messages. Press start to get out of the GUI panel and then press the Right analog stick down (like you're going into first person view).
Code Effect
X, Left, A, X Unlock camera for freeroam
My friend has the Xbox version, and the freecam cheat works on it. How does the galaxy droid relate to it?
Look here, second post from the last:
http://forums.obsidianent.com/index.php?showtopic=749&st=45)
It's by a dev and pretty much speaks for itself. Yeah, basically.
Almost all of the PC cheats were just debugging commands that were made available in the release version.
Some cheats are just bugs too though. Oversights in scripting or dialog design that players can use to pump up alighment, money, XP, etc. Those kind of cheats tend to go away with patching. I abused the money dialog cheat in the release version of Morrowind, myself.
There is a freelook cheat for the X-Box version of KotOR1 that's fun to use to check out the entire level from any angle. It's an example of a code specifically put into the game for the end-user. The code that enables it actually only gets compiled into the Release build.
I'll dig up the code for that cheat tomorrow. I've seen it mentioned on a few KotOR1 code listings, but they always have it wrong by one button so it doesn't actually work. Not sure how that happened. <_<
Generally speaking, cheat codes don't take a lot of time to implement. But since they're almost never part of the design documents, they tend to make their way in when some programmer has too much time on their hands (and when does THAT ever happen ). The freelook camera one, for example, was actually disguised to look like something else in the code. The programmer at Bioware that put it in must not've wanted other programmers to even notice it.
-Akari