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Im at the end of FF7 and im trying to master one of every materia. It says in the strategy guide that you can get magic counter by doing 'chocobo racing' and get sneak attack materia from the 'battle square'. I have tried over and over but i cant find them. Is it my luck or is the book wrong?
counter: im pretty sure that it is one of the prizes that you get for winning, be careful not to exchange it for GP
and sneak attack: possibly from winning the special battle.
The book is wrong, good sir. You can only get Magic Counter and Sneak Attack in the Chocobo Square, as S-Rank prizes. They're usually the "rare" one, ie there'll only be three cards with it as a prize. Good luck, you'll most likely be racing for several hours.
In the PC version, Magic Counter appears in the Northern Crater (left, then down) as well.