I assume you're using MDLEdit, if not then that's the easiest way to go. No face animation means you need to have the super model from the game you're porting to be in the same location/folder as the model you're converting.
If you load pfhc06.mdl with MDLEdit you can click on Header on the lower half of the screen, then on the top half you see Supermodel: S_Female03, that means you need to extract the mdl+mdx from K1 with that name. In the whole process you load with K2 on, switch to K1, export as ascii, load that ascii and then you can save as binary.
I've seen the line in the middle on several models, but that's not something I know how to fix. It's not a problem with the texture but with the model or slight differences between how the 2 games apply the texture to a model. It might also be that it wasn't an issue when KotOR didn't have those wide screen or higher resolution fixes.