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Computers suck.
That's weird...I have the pc version too and nothing like that has ever happened. There's a couple of patches on Gamespot that might help...
EDIT: not to plug my site, but if you're really having problems you can try using one of the save files on it
That's odd. I thought somebody mentioned something about wiping the disc but they might have deleted their post. Oh well
I'd suggest using the savestate editor to move squall to a different area :p