Any ideas as to how to fix this?

idk about a fix but you can avoid it by using a controller instead of mouse and keyboard. Worked for me without having to go through more technical mumbo jumbo to fix it xD (cause im dumb)

Actually, i got it fixed, had to turn on v-sync through the nVidia control panel

I'm having this same problem, I'm trying to deactivate various mods now and see if it fixes it

I fixed it by turning on vsync within the game

Just for anyone in the future. Here are some of the things to try. Basically the issue is down the engine which effects a lot of older games.. Where Physics and gameplay can fall apart above a certain Frame Rate. In this case 60.

Either Try;

Turning Vsync on With in the Game

Limiting your FPS to 60 with in an Overclocking tool

Or in my case, Use Vsync with in the Nvidia Control Panel using the "Manage 3D Settings" Tab and Adding KOTOR to "Programs Settings", Scroll down to Vertical Sync and Select Adaptive.