Your comments about changing the renderer between software and Direct3D aren't things that show up in the 7H configuration tool (either 1.5x or 2.0), which is why I suspect you've been fiddling with the original FF7 Config program (which doesn't know about, and therefore can't set, the registry keys necessary for 7H and the new graphics driver to function). I supposed you could try reinstalling 7H v2 and seeing if it'll reset your keys and options after you re-set all the configuration options within it, but it's always been a "just worked" sort of thing (even while I was helping unab0mb beta test), so I'm not as familiar with the error codes it can throw out yet).