I tried following the steps given here:
http://pcgamingwiki.com/wiki/Star_Wars: ... rds#RetailBut as you can see one of the steps involve replacing the game's exe with another exe. Here is where the problem starts because although the uniws patching is successful, the new exe causes problems for SecuROM and even though I can get the game running upto the main menu in my desired resolution, as soon as the first cut scene starts, it crashes because it detects that the exe has been replaced.
My game is patched to the latest version - which is a part of the problem. I'll tell you how:
Unpatched KOTOR 2 exe - SecuROM 4 (or 4.5 I don't recall)
Latest patched KOTOR 2 exe - SecuROM 7 (which crashes the game due to replacement of the exe)
The above method works for Steam versions of the game because it allows the exe to be replaced and since there is no CD involved, SecuROM doesn't come into the picture. Unfortunately, I have the retail version.