The music from FF7 and most other FF games was composed prettymuch entirely by Nobuo Uematsu. Because the songs are so beautiful, many symphony orchestras perform the songs. Typically, the conductor or someone else will arrange the song to transition it from one medium to another. Obviously the songs on FF1 for the NES aren't actual recordings of an ensemble performing the song. It's an arrangement of Uematsu's work using the technology that was available. When you hear an orchestra performing the song, it's often slightly different, note for note.
Uematsu himself does perform his songs live with his band "The Black Mages". I believe he plays keyboard, and is accompanied by a drummer, bassist and guitarist, but I'm not sure.






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