The installer and launcher for the Best of PC edition is IE based and doesn't work correctly - it shows a blank white window.
However, if you navigate to the installer directly and run it, it works fine. I also ran the DirectX 9.0c installer manually, the installer trying to launch it didn't work for whatever reason.
The installer needed to be force completed before it made its desktop shortcuts (and the launcher doesn't work anyway, remember) so once installed you need to run kotor.exe directly with "Run Command".
Once you've jumped through these hoops, the game runs magnificently.
Full screen, high quality graphics, no mouse pointer issues (which has been plagueing me with almost all other games).
This is OS X 10.6 on a 24" iMac, Codeweaves 8.0, and the "Stars Wars Best of PC" edition of kotor.
(edited for grammar and details)