AH HA! after looking all over and trying to get the cheats to work i had to find the .InI file in the local roaming for windows 7 and now it works! can some one else try to confrim this
my ini file was just where i installed SW KOTOR 2. Its not listed as SWKOTOR2.ini but as swkotot.
If you set your folder vieuw to details then the type of it is listed as configuration settings.
So Id have to disconfirm your roaming, unless you are in some sort of networked setup, or something else is diffrent id say its in the install folder of the game.