Whoa, hold up.
I tested it on my 3Dfx Voodoo3, and the results are, to say the least, strange. Please note that this is running in Win98SE, and NOT WinXP.
First, after trying to run it more than twice in a row using D3D hardware acceleration (appearantly FF7 REALLY doesn't like this current driver set, the movies keep not displaying, and the game just freezes to where I have to do a hard reboot), I decided to run it in software mode, to get a reference point (because I theorized that if I compared OpenGL mode to running in D3D there'd probably be no difference graphically, and no indication that my card was using OpenGL...), due to the fact that I can tell its software by the lack of Bilinear filtering on the primitives.
Well, I run in software mode, then attempt the registry tweak. Now, at this point, I MUST state that I'm attempting this using the 1.00 version of both the FF7 exe file and the config file, since I've no need for nVidia "patching" for my game to work. After launching it, I get no difference in graphics, as far as I can tell, it is still running in software mode, i.e. no bilinear filtering is happening.
Therefore, it is my conclusion that this registry tweak does not have an effect on the v1.00 flavor of FF7. Furthermore, I have also wondered that since it has no effect on v1.00 and that any higher versions have that "nVidia Mode", could this tweak be simiply a manual access of that "nVidia Mode" checkbox in the config?
Think about it.....nVidia cards work best in OpenGL. The "nVidia mode" could simply be skirting the original version's graphical incompatibility by running in OpenGL in the first place, where the game might not need the 8-bit palettized Textures to work in 3D accelerated mode.
Yes.....these are strange musings indeed, coming from me......