I picked up KOTOR for $19.95 the other day at EB and, I have to say, the graphics aren’t quite as good as I remember them. In contrast KOTOR2, while maintaining the look of the KOTOR universe, is a vast improvement.
Some things I forgot to mention about KOTOR2. 1) Some of the menu layout is much better than KOTOR. For instance: inventory management in KOTOR was organised according to a bizarre taxonomy (you could organise according to recently acquired items, etc.). 2) KOTOR had a feeling (perhaps somewhat illogical) that most things you were encountering in the game were new to the characters: alien races, planets, technology, and so on. This proved immensely satisfying for Star Wars nerds such as myself (“Ohmigod, Tattooine is barely colonised?!”). This wide-eyed innocence is lost in the second game: everything is old hat and nothing is explained. It makes a hell of a lot more narrative sense, but I miss that naïvete. 3) There is a y-axis, when you hold down the right mouse button. 4) The writing really is excellent.