Selphie. Wakka? seem strange choices, as long as they don't beat out some greats i'll be ok with that.
Agreed that ultros should have beat Selphie tho.

i'm gunna do my own list (i'll do 15 cos 25's a bit much)

15: Irvine, just cos he doesn't get enough love and he was cute
14. Rikku, she bought some spice to X and i like the al bhed language
13. Gabranth, classic evil twin who isn't so bad but is kinda
12. Reeve, he was an interesting chap
11. Hojo, cos the man was crazy and was a third (maybe a bit more but i mean in genetic contribution) of the way responsible for Sephiroth
10. Rinoa, cos although she annoyed me she was pretty and i missed her when she was unconcious
9. Zidane, it was fun to be him
8. Lulu, sexy and smart and hid her baby weight well.
7. Tifa, She stood by Cloud when he was sick and shes just interesting
6. Celes Chere, not finished the game yet but she is compelling, all together now "Oh my hero...so far away now!"
5. Yuffie/Vincent (as they are secret they count as one), that lil scamp sure caused some trouble and all though she was a bit of a pain at first, she became the most valued member of my ffvii team and she really pulls my heart strings at the end of DoC when shes looking up at the sky with no grin, her face serious.
vincent: emo and a bit of a drag but he can do some sweet flips, he is beautiful, if in need of fashion advice. Heroic and troubled. the flip side to Yuffie (if they were a coin), and his sad story of love with that scientist freak Lucrecia was kinda sad. plus it was fun aquiring them both
3. Cloud. Because he's not perfect and hes flawed but he's still the hero. and he drove a bike down the stairs.
2. Fran/balthier (As they are a duo): They stole the show from the instant they burst on to the screen on their flying motorbike, and what exactly is going on with them? whatever it is they are one compelling set of pirates.
1. Contraversial im Sure but.... Aeris: The woman was funny, sweet and felt more alive than any other character i can remember. Desired By shinra, loved by her friends and Murdered by Sephiroth. I still shed a tear for her, the loss of Aeris was one imense moment, she was great.

Honourable mentions
best octopus: ultros, (sniff u aren't just an ugly octopus)
best villain: Sephiroth (blah(latin) blah(latin) blah(latin) SEPHIROTH!!)
Best Princess: Ashelia B'nargin Dalmasca (she's as cold as ice, and a refreshing change of heroine)
Worst Character: Khimari
Best non-human character: Nanaki/Red XII