First of all

good to see this forum is alive and well. This was one of my top 2 favorite FF7 forums(i think the best =).
I started working this challenge on my psx some 3-4 years ago, but didnt have time to finish(and also cheated a little through Midgard).

Now i got myself a Gamepark Caanoo =D and have finally done it! With savestates i admit, but now i know how to do it, and even slightly better, so the psx should not be a problem. And by the way, if you didnt know:

The random battles, are not random =)
Neither are the fights for that matter.

Once i load a savestate, the exact same sequence of events happens, so i didnt cheat much, tho i wouldnt if i could either. If youre really tough at grinding, you could save and reset the psx/hanheld and hope for an easy battle with little dmg to your team, for some xp.

My challenge is

* No use of materia/magick
* No items
* No inn's or sidequest's (as in sector 7 where you can get a nights rest in a sidequest)
* Only starter weapons

So i got out of midgard last night and i know i'll get to the boss fight at Gi cave in Cosmo Canyon.
Last time that long legged spider you have to fight before the boss battle killed me proper. But now i have metior rain limit. Also i think i will get my team a couple of levels harder, but i do not know if the Gi boss is possible to beat...

I can post a guide of you are interested