It didn't sound like they we're doing a remake as much as making sequels/prequels like Advent Children, Crisis Core, and Dirge of Ceberus. I personaly feel it was just rumor but you never know, Square has a tendency to mention doing a project and then never speak about it till it comes out. FFX-2 was just a rumor for the longest time as well as Advent Children and all the other FFVII sequel/prequel titles. Seiken Denetsu and Front Misson really suffer from this problem...

Even if Square was thinking about doing it though, I doubt we would see anything anytime soon, with everything they seem to be doing for FFXIII... I mean @#!% three titles in the works already?!

I have mixed feelings about them doing it. On the one hand I don't want them to ruin something I truly love but on the other hand they have done a remarkable job on FFVII and I don't even care for the game. It's like having the problem of knowing that Squenix can make total drivial garbage like FFX-2 but on the other hand they can do something awsome like Last Order and Advent Children. As for Uematsu and Sakeguchi-san, Uematsu is just freelance now so Squenix can still get him, he did Advent Children's soundtrack and Sakeguchi-san might be more of an issue really... It's really sad to see the current state of Square...

Anyway, this is all just factless observations so chances are really good it's just a fanboy rumor.