I am so angry at Microsoft because you can't play Star Wars Kotor 1 PC on Windows 7. I did everything you said with my copy of Star Wars Kotor1 PC and i did every single combability thing and ran as administrator when i am the administator but what ever i do it crashed at the ship image after you click play on the launcher.
Do you get a warning window with a bunch of unknown characters?
yes that is it Microsoft I am switching back to Windows XP. Windows 7 sucks.
I installed and ran without doing anything special, no compatibility modes, patches or anything, just a clean install.
Remember, #1 cause of failure is user error.
i run Kotor on windows 7 , remember to run as administrator and with compatibility mode with windows xp, but for some reason TSL just doesnt work on windows 7 no matter what i do.