They run decently after updates, mods and tweaking at least. I just went through a game of KOTOR 1 and 2 on my gaming rig. So they at least work on Win 7 and Radeon 4850.
I have found that sometimes the games will not go full screen but into windowed mode. You fix this by changing the resolution then you can bring it back to your playing setting. Also if the game loads to a black screen do an (alt + tab) to kick out of the game and back in.
Be sure to run the
KOTOR 2 Vista fix (also used for Win 7). Right click on any installers and updates and choose to run as Administrator. Also take a look at
this thread for installation.
I would also highly recommend
TSLRCM 1.7 and the
TSLRCM 1.7 fix for KOTOR 2. This way you get the lost content that was cut from the game on release. It is quite interesting and besides adding another level the HK Factory there seems to be some extra little side quests and dialogue. It also seems to make the ending more complete for KOTOR 2.
You may also need to install
DirectX 9.0c for Windows 7. I think I installed this awhile ago though I am unsure if I did so or not.
None of the Widescreen patchers worked for me in Win 7 though they worked before in XP.
Now I only wish they would make KOTOR 3. SW: TOR does not count making it MMO and unending completely changes the game. Though a fan seems to be making headway in making a KOTOR 3 using the KOTOR 2 engine.
KOTOR Revenge of Revan.