Iv got it!

Strats with a U haul - We have all assumed he ment to put starts but in actual fact he is refering the the boss music, played on a stratocaster

Ends with a Red Ball - after you beat Jenova on the ship to costa del sol you can obtain red ball

Don't get confused
When you get so used - Dont get confused by being used by Jenova in the guise of Sephiroth

Down two, right the same - down 2 steps on the deck and right 2

He's yours to tame. - you tame him and become his master

Its the Ifrit Materia obtained on the shinra ship going to the Costa Del Sol!