I've found the process for installing with Steam. It's actually pretty simple, but different from the standard:
1) Ensure you do not have a typical install (from disks) already. If so, clear the install out and delete the directory folder from your C:\ drive (mine was at C:\Program Files (x86)\LucasArts).
2) Install the game from Steam. Steam, by default, will put the content here: C:\Program Files (x86)\Steam\steamapps\common\Knights of the Old Republic II
3) Download 1.8 the TSLRCM exe.
4) Run the exe. During the install, the exe will ask you where you want to install files to. DO NOT use the default location (C:\program files\Lucas Arts\SWKotOR2), instead, use whatever location Steam has installed your game files to ("C:\Program Files (x86)\Steam\steamapps\common\Knights of the Old Republic I" for me).
5) Run the game and enjoy!
Notes: The most obvious indication I've seen of the install being successful is that in the first room after your conversation with Kreia, you'll come across a body who you loot a vibrocutter from. This is not a Plasma Cutter as gets mentioned sometimes here, but a unique vibroblade. That is the easiest difference to spot I've seen.
tomatoandrew
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