Cloud seemed to have been found by Tifa very shortly after the death of Zack, which was several years before FFVII. He made it to Midgar, though he was still very out of it from the trauma of the events of Nibelheim, and Tifa nursed him back. That is the impression the game gives.
He seems to have spent a couple years hanging around Midgar, but didn't actually join up with Avalanche until the reactor mission, which is why Barret didn't know him yet.
Likely he was picking up Zack's job of being a jack-of-all-trades, helping out people with odd jobs around the slums.
Which also means that, had Aeris mentioned Zack, it would have been little different than Zack's parents mentioning him. His memory had already solidly blocked that out.




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