But... that doesn't make sense
You did re-download 1.8.1 before re-installing, right?
Also, you install it into main KotOR II folder, not any sub-folders, right? Probably so, since you say you've got files in modules, override and such. Then again, if you've got those files, I can't see how menu wouldn't change...
Last thing, Steam version? If so, make sure to turn off steam's auto-update so it doesn't revert our changes.