Ok, keep in mind I haven't managed this EITHER (LOL) but it's only because I just learned what I was doing wrong yesterday... Unless you're a perfect game kind of person, you don't need it to finish the game.

- As most have pointed out, you've got to touch the hot spring. You said you had that down.
- Now, remember the part where it's all snow blowing and you have to place the flags to see where you've gone? (It's the same screen where you find the crappy "All" materia in the cave smack in the middle of the map). You have to head EAST on that screen in order to find the cave where Snow is located. There's no other way to it.
- Snow only has 4000 HP so smack her with a Beta blast and a couple attack rounds and she'll go down hard.

I actually blew through there this time, only getting the Safety Bit. I figure I'll backtrack later for the Added Cut and Alexander Materia.

It's amazing how much fun and emotion this game has even after you put it down for awhile. There are PS3 and XBOX 360 games that can't even hold a candle to FFVII and this is over 10 years after the fact!

As a sidebar: Did anyone see they are releasing a sequal to FFII (FFIV) on the Wii Ware? It was a moblie phone game in Japan. I might just have to buy a freaking Wii so I can play it! LOL