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A Glitch in the System
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There is a known glitch in the limit break system that can cause some major
problems with your game. This glitch generally does one of two things.
1) When you start a new game sometimes this glitch will occur. When this
happens you will find that instead of starting out with just your 1/1 limit
break your character(s) will have all limit breaks already learned. This may
appear as a wonderful occurrence at first but don't count it as a blessing just
yet. I'm not sure what ramifications if any this has later in the game. It's
possible this could screw a few things up later on, such as getting Final
Attack from Battle Arena since you need to buy Omnislash and teach it to Cloud
as one of the requirements to access the special battle. You can't exactly
teach it to him if he already knows it and I'm not sure if the game will count
it or not. I haven't had this glitch happen to me so I'm not sure if this would
really happen but it definitely seems possible. Anyone who has learned
omnislash via GameShark will know that the game doesn't count it when you try
to access the special battle, so it's quite possible the game won't count the
glitch either. If anyone knows for certain that there are problems caused by
this glitch please let me know so I can list them here.
2) The second occurrence of the glitch can be even more frustrating. Have you
ever learned all of a character's limits except the last one and then tried to
use his/her manual but the game still won't let you learn the level 4 limit?
Well that would be the glitch coming into play again. Once again I haven't had
this happen to me, but I know a few people who have, and by all reports they've
never found a way to fix the problem short of starting a new game. Basically
you just have to start all over or just keep playing without use of the level 4
limit for the character(s) that this happens to.
Those are the two most common results of the glitch. There are a few other that
I've heard of but I don't know for certain if there is any truth to them, never
having personally witnessed them. I'll list them anyway for reference.
1) You can't learn limits at all. You get stuck with your 1/1 limit for the
entire game no matter how many times you meet the requirements to learn the new
limits.
2) Learning a new limit gets delayed. You make the required number of kills or
uses to get the next limit but you still don't learn it. Then later on,
sometimes after learning the limits after the one that wouldn't work, you'll
suddenly learn the limit you missed for no apparent reason.
Well that's all I can tell you on that topic. This glitch is known to happen,
but fortunately it doesn't seem to happen very often. I've played through FF7 a
total of 13 times so far and I've never had any of it happen to me. Just hope
you are as lucky as I've been.
(source) (sorry, link didn't work. Search FFVII in gamefaqs, then click on the limit FAQ)