On the PS2. I had to adjust the aspect ratio, but otherwise they haven't aged that poorly at all. But I may be in the minority that actually likes the graphics of Episode 1, and prefers them to the more realistic graphics of Episode 2. The latter shows the limits of the system, while in the former I can just treat it as a cartoon, and view everything in a different mental frame.
But yeah, we're basically in the exact same situation. I'm still in the process of playing Episode 1, actually. I've been taking my time with it, and not playing nearly as much as I used to. Wish I could say that's because I've grown up and have better things to do, but no, I'm simply sitting around on my ass more.