Several parts of the game seem to have a problem displaying the lower part of characters and enemeis. My characters are missing their legs and a lot of the enemies can barely be seen. This has occurred only in the Undercity and Dantooine so far though.
Anyone else experienced this?

These are both places with grass. And in this game grass has been problematic for ages. You should be able to disable it from the in-game options. If that doesn't solve it, look for other solutions to grass-related problems people have found.

Ahh you are absolutely right. Thank you very much, that worked perfectly!

I have a solution that has worked for me that keeps Grass Enabled, I've put this up on the Steam Forums after I found it worked and it works with this GOG version too. So some Copying and Pasting and a bit of Editing later ...

Visit this page: humus.name/index.php?page=Cool
• Download "GLOverride" (downloads as a ZIP file)
• Extract/Copy "opengl32.ini" and "opengl32.dll" into the Game's main executable folder (containing "swkotor.exe", in "C:\GOG Games\Star Wars - KotOR" by default)
• Edit the "opengl32.ini" and enable (change from 0 to 1) "ForceAlphaToCoverage"
• Alpha to Coverage requires Anti-aliasing to function so set the highest in game or in the "opengl32.ini" with "ForceMSAAMode" to the highest supported MSAA of your video card
• Enjoy proper Standing Grass Textures (after re-enabling Grass of course)

Comparison Pictues (From Steam version, but appears the same on GOG version)
Before GLOverride:
i.imgur.com/O4l6Gkp.png
After GLOverride:
i.imgur.com/iWFbdIs.png

There is one side effect, textures that have transparency will have dithering, it will make some thing look strange like causing a noticeable "flicker/shimmer" on highlighted options in the main menus but it's fairly minor in my opinion. [Edit: A higher Anti-aliasing setting helps.] And if anyone is curious, it seems to be related to the problem in this article I found while trying to fix this problem. computersciencelab.com/Direct3DTut1.htm

EDIT: Small decade later change of instructions to include Anti-aliasing requirement.

TruthUnknown - while your solution does fix the grass issue, the transparency issues it introduces makes some gameplay critical elements such as the currently queued action in HUD almost invisible. This affects every battle and is in my opinion worse than a lack of grass.

I had my hopes up there for a while, but alas the hunt for a solution continues...

WOW... after seriously 10 hours of searching for a way to fix the grass I found THIS post...

I am unsure what issue Justinian is talking about that makes HUD invisible... I just tried it and it works PERFECTLY... I even went to fight a few dogs in the wild on Dantoine and did not see anything wrong with my icons or hud...

I am on dantoine and had grass turned off cause i couldnt see anything... and with this opengl file i can finally keep the grass and everything else seems to still works!! I have not noticed any other negative changes for now...

I dont think I ever spent so much time trying to fix a game so that everything is perfect... I have over 5gb of textures in my override folder... often need to start and restart the game 3 or 4 times to get flawless widescreen work in 1152x648 (720p) which is my prefered resolution (on a 72inch monitor) otherwise text was too small to read from the couch... now i can finally say the game is fixed and perfect! :)

Thank you SO much for sharing this! :)

Sadly when I tried this fix it did not fix the game at all. In fact the characters also became invisible. Am I following the directions wrong? I put those two files into the main KOTOR folder and made "ForceAlphatoCoverage= 1" in the opengl32.ini file.