KOTOR is a story-bassed game and not a persistent world and so might not be suited for on-line play.
That said, I expect it to have the same range of options as the Baldur's Gate games, which were made by the same people. These games were two of the finest ever to come on the PC, each lasted many months of playing time with almost totally non-linear scenarious, branching plotlines and dialogue choices and even in-party romances based on the sex and profession of your character and those with him. The multi-player options (co-operative play only) were astounding.
When they said that Bioware were doing a Star Wars RPG as well, it was a VERY happy day.
I think I have a thread about this buried deep inside this section somewhere; in wich I posted a link with some details about the game. I'll see if I can find some details again