If you like Star Wars, you love the lore behind the Force, and you love the Jedi, then you'll probably hate this game. Why? Because the idea behind KOTOR 2 is to take all of the black and white in Star Wars, then break it down so you see past the blinded Jedi council and ambitious Sith. It's not your standard Star Wars movie.
The game turns Lucas' pure good/pure evil fantasy into moral playground that makes you question the very existence of the Force and the people who use it. That being said, though, this is an absolutely fantastic game for any cRPG/WRPG fan. It sticks by the standard D&D rules, just like the first game, but adds more feats, force powers, and items. However, after a certain point, the game gets extremely easy, especially if you have half an idea of what you're doing.
Unlike the first game, it doesn't have a major twist (the biggest twist is a backstory for one of your companions), but instead slowly provides hints to the major plot. The game's setting is pretty dark, too. The universe is in disarray, and really feels like it. Settlements are run down, there's ruins on places that were bright in the previous game, and the Jedi order is nearly extinct. However, along the journey you run into several party members with interesting personalities and troublesome backstories. If you were expect any form of romance, it's not here. There's subtle hints, but no official romance options (which I really enjoy). That said, I suggest playing as a male simply due to the fact you get Handmaiden, who is a far more interesting character than the Disciple.
Overall the story and setting make a very immersive game that will keep your attention, as long as you can force your way through the first two planets. The combat starts off fairly difficult, but becomes a breeze once you get going, then turns into EZ mode. Your companions are great, some of the best if all of video game history, in my opnion, and their voice actors deliver top notch lines that you will remember for years to come.
Is it better than KOTOR 1? In my opinion? Yes. In your opinion? I don't know, play the game, dummy. (just kidding, i don't mean any offense at all, but you should form your own opnions instead of jumping a bandwagon)
P.S. Look into the Restored Content Mod to not only fix a lot of old bugs, but get access to a TON of content that was cut from the original game. Also, if you use a widescreen monitor, look online for a widescreen fix. It's pretty easy to do.