I'll tell you what, sephiroth from the past...try copying ALL the movie files to your hd. This just might help you out. If the disc is scratched, I could probably *cough* give you *wheeze* the originals!! *cough cough*. Somewhere in your FF7 folder place all the movies from disc 1-3 (play discs, there's no movies on the install disc) in a directory, such as "movies". Anything else will do fine. Are you anywhere near decent at editing the registry? Well, here's your chance to learn.
*skip this part if you already know how*
If you pop open the start button, you should see a "run" command. Click that. When the window pops up, type in "regedit".
*now, proceed*
Find the key (folder dealy) named HKEY_LOCAL_MACHINE. Pop it open. Find the key named "Software" inside the one you just opened....and pop it open. Then, find the key named "Square Soft, Inc.", and pop it open. Then, click on the "Final Fantasy VII" you just saw pop out. But don't pop it open. The goal is inside here. Do you see the string value (the red 'ab') called "MoviePath"? If not, create one called that. Either way, you need to specify at this point the path where your ff7 movies were placed on your hard drive. For me, I placed them in "c:\myff7directory\movies". So in my case, my string value for MoviePath is ".\Movies\". I hope you'll get it. So try it out, man...tell us if you can get past the part. If there's a problem copying the movie that's supposed to play when bugenhagen just takes off, then PM me. I'll....you know....yeah..