Movies worked straight off the bat for me (...I think) I did have the random and not so random crashes though - how did you fix this? I had to copy save games to laptop everytime I reached a point which crashed at the same point. (e.g. The monster in the jungle on Kashyyyk, it's death animation killed the game.)
Just installed both on Windows 7 x64, haven't had a chance to play yet.
Well there is a really good information post on the official forums.
But here is the jist....
Use a program like ImageCfg to automatically set KOTOR to run on one core whenever it is started.
open note pad
put this in
imagecfg -u swkotor.exe
imagecfg -a 0x1 swkotor.exe
pause
save it as processor.bat and place it in your KOTOR directory where the .exe file is located
Run it and then run the game.
Add the line "Disable Vertex Buffer Objects=1 under Graphics Options in Swkotor.ini file.
Delete these if you have them too.
1) C:\Program Files\LucasArts\SWKotOR\ gameinprogress
2) C:\Program Files\LucasArts\SWKotOR\ currentgame
3) C:\Users\[your_name]\AppData\ Local\VirtualStore\Program Files\\LucasArts\SWKotOR\ gameinprocress
4) C:\Users\[your_name]\AppData\ Local\VirtualStore\Program Files\LucasArts\SWKotOR\ currentgame
Apparently some of these fixes work with KOTOR 2 as well.