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Well, the mark it leaves is fairly simple--some people actually remember. I suppose that those that weren't shifted in time don't (because for them, time simply stopped, as Sir Bahamut suggested, and picked up after TC), but Squall, for instance, remembers it, as I expect would Xu and the CC Group, and anyone else whom managed to travel through time in that method. It wouldn't surprise me if a few things didn't come back to where they needed to be quite right, or some people got lost, of course, because as Time Compression ended, existence seemed to be somewhat malleable. That, however, is outside the purview of this theory.
I disagree there. The notion of things getting 'lost' and not coming back to where they were supposed to be contradicts fate, but I'll come back to that a bit later...
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Personally, I think that she chose Edea's time because that's the only time she could choose--you have to know the person you're being sent to, using Ellone's powers, and because Edea literally had Ultimecia's powers (assuming that time is one, and that the events at the end in the past had already happened), there was enough of a bond that Ultimecia could possess Edea. Now, whether she needed three times or whether this just wasn't /quite/ far enough, I'm not sure, but it seems to be that needing three times is the simpler option, and offers a better explanation than needing a specific time without any discernible reason.
But as I explained last post, it cannot simply be that she needs to cast it at three different times, because if that were all there was to it, she could simply cast it three times in succession in her own time, because each cast would still be in three seperate locations of time. Instead though, Ultimecia needs to go the far past to activate it, meaning there must be more to it. In your three point idea, one might argue that each casting needs to be seperated by a certain amount of time, but not only does this add further baseless assumptions to an already baseless idea, it doesn't add up, because the intervals between each period she's in aren't evenly distributed (which would be the logical assumption). Ultimecias era (presumably where she cast spell nr. 1) is sperated from Squalls time (spell nr. 2) by several hundreds of years, but the seperation from Squalls era and 'the far past' (ie. when Adel was young) is at best 60 or so years.
In other words, the three point idea does not avoid the unexplainable fact that Ultimecia needs to cast the spell at a certain point(/s) in time, but rather adds to the confusion by stating that she doesn't cast it once, but thrice!
The idea that she cast it once is thus clearly more favourable, because although it cannot either explain why Ultimecia needed to cast it where she did, it is simpler than the three point idea.
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But really--time is set in stone, sure (since we're operating under that idea in FF8 right now), but so is reality. If the Sorceress can manipulate reality, think about the amount of Sorceress power involved in absorbing all of reality. It's not unreasonable to think that something that could rewrite existence could alter time a bit, too.
I agree with aisle_s here. Sure, if time were fully compressed, Ultimecia could theoretically screw up time completely, but that never happens. Why? Because fate has laid everything out so that Ultimecia loses. The only reason the main characters defeat Ultimecia is because of fate (her final form is more or less as powerful as Hyne, after all), and Ultimecias story is all about escaping fate, which of course is what brings about her own fate to begin with!
So no, I think the time compression event is orderly chaos, not simply chaos. Everything is set out perfectly; time is set in stone completely, and time compression is merely another set in stone event fated to happen, and is simply another logical part of the unfolding line of time.
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The only people who would remember TC would be those from the present (by that, I mean Squall's time) and the people from the future, because in the past it had already happened...if you understand that, I don't know if that's clear enough because I suck at explaining things.
But since time compression affects past and present alike, it had also already happened in the future too....