Here's what you do..
1.Completely uninstall FF7. (back up any save files if you want to re-use them)
2, Re-install.
3. Use Patch 1.02
4. Open FF configuration program. Click the 'Graphics' tab. Click the little box next to the 'Renderer'. You should have 2 choices: Software or Direct 3D Hardware. Select the 'D3D'. DO NOT check the Nvidia box.
5. Save and exit.
6. Open RivaTuner. Click the little right-hand box under 'Driver Settings' (It should have 'Customize.." next to it). Select the second box from the left (Direct Draw and Direct 3D settings). A differrent box should pop up. Go to the upper right hand corner. Hit the '>' box until you see an upper tab that reads 'AntiAliasing' (it's the last one). See the top line that says 'AntiAliasing Method' ? CLick the selection box next to that. A list of different modes will drop down. Look for the "2x2". Select it. Now, click the 'Apply' button at the bottom, then the 'OK' and "OK' one more time.
That should be it. It works just fine on mine.