Well, all of it really. The Total War games are pretty notoriously heavy. The 5450 WILL NOT be able to run it at a decent frame rate but your processor is also lagging a little and they really do benefit from having slightly more ram than that, but that won't affect the frame rate all that much.
The real weak link in your PC is the GPU though, so upgrade that first. There is literally no reason to buy a 5xxx card but if you are on a super tight budget, I'd reccomend the AMD 6850/6870 as they are really good value for money. It probably couldn't max it out but on low/medium you should be able to get a decent frame rate.
@PenguinDust: Numbering generations is dumb in the first place. Some people start from PS1/N64/Saturn I think, whereas other start at Coleco Telstar/Magnavox Odyssey
@weirdo: No, Steam didn't break it. It's an old game that is notoriously shitty to get to work on newer systems and operating systems. DOSBox and DOSBox-alikes are only for emulating DOS games, and KOTOR 2 came out in like 2004.
You might want to try the core affinity stuff. That seems like the kind of thing that may cause problems if you didn't already try it.
But yeah. It's an old game, and not only is it old which will cause issues but it wasn't even particularly polished or finished when it came out. I am just happy they released it on Steam at all, as I've been dying to replay it for ages and my Xbox copy doesn't work in my 360, and I couldn't find a reasonably priced retail copy anywhere. Maybe the fact that it's selling so well will lead to a KOTOR 3 maybe?
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