1) Installed patch 1.02
2) Disabled FFDshow's TruMotion decoder to avoid interference
3) Installed the FMV driver (http://aaronserv.dyndns.org/hosting/.../ff7betap1.zip)
4) Set Win98 compatability mode on ALL executables. That includes ff7, ff7config, even the cdcheck one.

The game then worked perfectly fine Smiley

Source'd by Guspaz at QHIMM