Alright everyone. For those of us who've anxiously awaited a status update...
Here's what's up as far as I can tell.
Everything is done except lip-syncing. SithHolocron left only after he had done everything he could to help, so don't worry.
In order to lip-sync lines in KoTOR and TSL, we need a tool called CLUS, developed by the university of Oregon to generate phonemes based on audio files.
(Basically if you have a text file with the written dlg and a spoken audio file it'll match the two up and lip-sync the dialogue.)
The university of Oregon's servers went down a while back, which prevents anyone else from installing the mod.
However, a user here by the name of Jenko managed to get in contact with the people at the University of Oregon.
They sent him the installer and have given him permission to redistribute it.
So at this point it seems that there are no more roadblocks and there's no need to worry.
I hope by posting this I haven't violated any rules.
If so, please alert me immediately and I'll take it down.