oops...looks like we are on at the same time.....I just added some suggestions.
Another thing you can try is go to Add/remove programs....windows setup....multimedia....
make sure you have your windows CD.
and deselect Audio and video Compression, Apply. Reboot and then recheck them, reboot.
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There is one more thing...but it's risky. I think windows will reload them. At least it did on my Win95 machine. But I take no responsiblility if, for some reason, it messes up your mediaplayer or something.
First I download a newer version of mediaplayer...then...
What I did is the same as the above, I deselect audio and video compression and then went to the Multimedia icon in the Control Panel....I went to the Advance Tab....I open the Audio Compression Codes and Video Compression Codes...and I removed all of them that windows would allow me to remove.
I then rebooted...rechecked those Audio and video compression boxes....installed the newest version multiplayer (6.?(can't remember the version), it was a while back) rebooted...and FF7 worked fine.
Most of the stuff I removed manually, in the Advance Tab, magically reappeared.
My problem at the time was lousy framerates during the movies. and only after removing the stuff manualy, the problem went away.
your problem is different, so even the above may not work..... (at the time I was going to reinstall windows...turned out I didn't have to)