Double posting is against the rules here, I'm no mod but just letting you know. You could copy the FMV files from your disks to your hard drive to where they're not being read from the disks. You'll just have to make a slight edit to the registry entry. To do this goto Start > Run > regedit > ok then look for HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Square Soft, Inc.\Final Fantasy VII and modify the entry MoviePath to point to the directory on your hard drive where you moved the movies. Say if you moved them into C:\Program Files (x86)\Square Soft, Inc.\Final Fantasy VII\Movies you would change the entry to point to there.
If it still hangs up simply look for the FMV file that's hanging up and attempt to view it in an external player, if it hangs up there then you have a corrupted video file and need to either find another to replace it with or create a "dummy" file to skip it. If it comes down to the dummy file, simply create a .txt file, and change the name to whatever the video file was, for example if the bike video was the one causing the problems you'd rename the .txt file to bike.avi and overwrite the original. This would create a blank video in place of the first and allow you to more or less skip the FMV sequence.
