Emulation is a suitable choice if you have a computer with at least 256 MB RAM and a GeForce 2, which I'm sure you do. Since FF VII's 3D graphics are so simple, even with such an obsolete computer you will only experience slowdowns when you cast Knights Of The Round.

Welcome to the official ePSXe website
Here you can find one of the best PSX emulators around, along with extensive instructions. They also have a forum if you have any problems. For BIOS and plugins just use Google. Just make sure you use 1.5.2, NOT 1.6. The latest version doesn't work really well on Final Fantasy games.