I'm still thinking that a player versus player option utilizing some type of enemy control/manipulation would be the only worthwhile "multiplayer" FFVII mod. Allowing for a 2nd input device would probably be necessary, but ppl already seem to have some ideas for that. Think of the possibilities that would open up if someone were able to do this...with the right mods, you could have something very close to a Party vs Party option. You know you all wanted to pit your Cloud, Cid, Barret, versus John Q's Cloud, Aeris, Yuffie. Off course I'm getting ahead of myself and it has already been mentioned that nobody really has the spare resources to start a project like this. Anyway, since it got revived for a day or two, figured I would add my 2 cents.
Assuming you did have 2 human beings sitting at a screen, one with a joypad and the other with a keyboard and this was functional...
could you rig the AI to have one of the characters in the player's party Auto-Manipulate one or all of the enemies? If you use PrC to open up all a monster's abilities for use while Manipulated and to make all enemies able to be manipulated...well now you have:
"Player 1" has control of 2 characters in the party.
"Player 2" has control of 1 or more enemies.
FFVII Versus is born!
Hell, even without the Auto-Manipulate feature, if you made the proper changes to the scene.bin and you could get 2 controllers/keyboards working you could have Multiplayer Cloud & Friends, and if that got boring, you could just manipulate anything tough to try and kick you friends ass. Of course, someone would have to figure out a way to make it so that Manipulate doesn't go away after getting physically attacked. Idk...seems like this could be more feasible than anticipated