I didn't make it!
As everyone knows Vista hates KOTOR and vice versa and theres many ways to make the relationship symbiotic
Not all the ways mentioned worked for me, hell I had to find part of it myself for it to work!
Just for the people for whom the general ways dont work here is my fix
Install KOTOR2 like advised on the Obsidian supportforums (running setup.exe from CD1 under admin and comp mode etc)
Download the Vista Fix and Skip Peragus mod from Filefront and install em
follow instructions given below
Run it in Windows 2000 comp mode
Disable Sound and Movies in Launcher
Start the game
Enable Software sound in the Sound options > Advanced
Activate Sound in Launcher
I know its similar to other but I had to restart the game like above to play with sound and noone ever suggested the Skip Peragus part so hereby