Static objects like weapons should be pretty straightforward even if you have little/no experience. Animated objects (like bodies - armour/robes/clothes) are possible but require a fairly reasonable degree of experience to convert.
You have two main options for software. The first is 3DS Max (which you can get via an educational license if you are a school/university student) or the cut down crippleware (and thus free) version of it, GMax. Alternatively there is Blender. Both have import/export scripts for KOTOR models, KOTORMax in the case of the former and KOTORBlender in the case of the latter.
How you get the source model into your program of choice depends on what format it is in. As mentioned, GMax is crippleware, so it's the most limited. You can get an OBJ import script for it, so that route is feasible. For Max and Blender, there are various native and 3rd party import scripts around for different game model formats. In regards to some of those you mentioned, STL is a 3D printing format and should never be used for game meshes. TGA is a texture format, not a model. I have no idea what an ODF is (unless it's the open source Word DOC equivalent - maybe it's a readme). MSH is pretty generic and could literally be any of a number of different game-specific formats. OBJ is a static model format that is widely used and typically natively supported by almost any 3D program. Although not mentioned, FBX is another format you'll see commonly which both Max and Blender will accept (but not GMax).
If you are sourcing models intended for direct use in another game then you'll almost certainly need to deal with whatever native format they are in. Possibly conversion via a separate tool may be necessary (as with some Source engine games, for example) or you may need to find a specific 3rd party import script that will handle that format. Blender typically has more support for that sort of thing. You can try searching the Xentax and ZenHax (a Xentax splinter group) forums for those. There is also Noesis, a free program that supports a lot of different game formats natively, and which has additional format support via scripts from Xentax/ZenHax. Noesis will allow you to export models in a wide variety of common formats like OBJ or FBX, so it can be handy for conversions.
Regarding mesh density/poly count, if it is already a game mesh then it's unlikely to be a problem. Even models intended for current AAA first person shooters wouldn't really be an issue in pure poly count terms, although it would be a complete waste in KOTOR. The main issue with poly count is shadow casting. The engine will crash if a shadow casting mesh is over about 3-3.5K triangles. But that has an easy solution, you just make a dummy shadowcasting mesh that is low poly and don't enable its render flag.
As far as other limitations go, a big one is that Odyssey (KOTOR's engine) doesn't support emissive textures. It does, however, support emissive meshes, which it calls self-illumination. This means if you have any glowy bits on your model, they'll need to be split out to their own separate mesh so that the self-illum flag can be enabled on them. Alternatively, it may be easier to create new overlay meshes to sit on top of the original, especially if they are simple shapes like buttons and so forth. Beyond that I can't think of anything too significant.