I've been working with the staff at the University of Oregon, the people that own this tool, as well as one of the original authors of the CSLU Toolkit. Super helpful people! We finally came to a solution that allows the CSLU Toolkit to be installed on a computer again - WITHOUT their licensing server being active (even though it's a free program!). Obviously for me, animating KOTOR stuff for the movies, I needed this pretty badly! I've tested it and verified that it works (though not in Windows 8 or 10, it must be Windows 7 or lower).
I'm not sure if I can distribute this new version of the CSLU Toolkit installation, I was given permission to do some from the University of Oregon, but am unsure about the site rules as I didn't author the original software or anything like that ... I only modified installation files and some other files within the program to allow installation and handle all that stuff. Wasn't easy, but I needed it working again!