To get anything approaching effective teamwork in KotOR is fiddly and requires one to manipulate the "AI" with care. I normally liked to play as a scoundrel gunslinger jedi*, so I usually took Mission Vao and a tanky close-quarters character. In solo mode I would sneak Mission and my character into the rear of the enemy using our stealth belts, then I'd switch to the tank character and send them in the front door. Then I'd quickly switch to my character and Mission and shoot the enemy in the back with Sneak Attack. Yes, I played as a light-side jedi, why do you ask?
Members of my party getting stuck on the scenery was always a problem. After you kill the Krayt Dragon, always shoot the corpse until it disappears, so that party members don't get stuck on it when you have the fight against Calo Nord, for example. Yes Carth, I am looking at you.
Light side/Dark side is a bit stupid, but you have to blame George Lucas for that, not the game. If you want to play a force-power-centric character, there is something to be said for going Dark. Fear/Horror/Insanity is definitely better than Stun/Stasis/Stasis Field, for example, and you get Horror at just Level 6. But I can never bring myself to play Dark because the dark choices boil down to "be a jerk", so I just make Bindo take all the dark powers, and gun/grenade down the enemy while he drives them helplessly mad. Light side!
And yes, the story is the real draw. As you'll gather, I loved the game. I'd love it if they remade KotOR 2 as well, because the story is even better, but only after you patch the game to restore the content lost because of rushed development...
*Because I think lightsabers are stupid, and the wiffle-bat lightsaber combat in KotOR is very unsatisfying.