An oddity I noticed today trying 7th Heaven out... the first time, I just activated "Skip Cutscenes", and ran the game. Everything's fine. Then I activated The Reunion, made the EXE switch, ran the game... and now arrow keys don't work. At all. I can't even start the game. So I removed all the plugins and ran FF7 without 7th Heaven. Same problem. Apparently, FF7 is no longer using the arrow keys. At all.
Edit: Got it working... for a while. When I entered the Beginner's Hall, the second time the controls froze. Completely. I keep losing my controls randomly.