Menu system, name input, save game: don't really care if it's in English, but it shouldn't be much different. There are some games in Japan which are completely Japanese except for the menu system.
Movies: I've been planning on re-encoding from the PSX discs for higher-quality anyway.
Bitmap graphics: Not sure exactly what graphics you are talking about, but again, it's the dialog I'm concerned about. Knowing the Japanese for "Left D-Pad Button" isn't going to be all that useful. (well, outside of most circles...heh)
If I have to, I will resort to running it emulated. However, that's not only super-ghetto, but prevents me from running the really cool projects that are going on around here, such as the NPC reconstruction project. The game is just that-much-more immersing when the models look like...real people. I don't think it's necessary to be so negative about this idea. I'm a reasonably accomplished programmer and, with help getting the structures worked out -- most of which are already done, from what I can tell -- it shouldn't be hard to automate most of it.
Additionally, if I do get this completed, it would sure be cool to provide to the Japanese gaming community, since they never had an FF7PC. I've shown several of my friends here FF7PC+highres+NPC+FF7Music, and they had their socks rocked. It'd be nice if they could share that.