I know about 4-5 people with Xboxes vs about 30 with PS2s. The PS2 folks talk about their games. The Xbox guys talk about their bugs. 3 of us have issues where sometimes the box appears to have difficulty reading the disk and will take upto 20 minutes to finish whatever it is its reading - if it doesn't bail out entirely. Sometimes it gets corrupted and loads garbage in. Most of us are on our second or third Xbox - only to find the problems continued. We all bought from different places.
Perhaps Kotor1 pushed the limitations of the Xbox, but Kotor2 might as well be called "Kotor1 continued" there's nothing really new or exciting in it on the Xbox. Infact, all your old favorite bugs from the first engine are still there

Quick example: Friendly AI only move toward you, so you will find yourself getting stuck countless times simply because none of your characters can move and you have to mess about with swapping chars in/out at xbox-like snails pace. Numerous NPCs get stuck in a sub-plot state or fail to come out of it (e.g. salvagers still have join the militia option).
I'm hoping the PC version is delayed not only for bug and content fixes but also because the PC version is going to be making full use of the video and sound features available to those of us with more sense than to buy a hunk'o'junk manufactured by Mickeysoft.
Summary: Don't buy Kotor2 Xbox unless you are a masochist.