Ok, I followed your instructions:
Placed all contents of zip file in ff7 prog folder (a directory and several dlls), placed the ost mps in a folder at root of c, and pointed the config to the necessary paths.
However, when running the following text appears in the ff7music box
"DataPath is C:\Program Files (x86)\Square Soft, Inc.\Final Fantasy VII\ficedula\
Init patches
Reading ini...
Parsing paths... -currently C:\FF7\OstRE
C:\FF7\FF7_PSF
C:\Program Files (x86)\Square Soft, Inc.\Final Fantasy VII\ficedula\
.\
File search paths:
C:\FF7\OstRE\
C:\FF7\FF7_PSF\
C:\Program Files (x86)\Square Soft, Inc.\Final Fantasy VII\ficedula\
.\
Files count: 91
Patch init done
----------------------------------------------
FTH: (4948): *** Fault tolerant heap shim applied to current process. This is usually due to previous crashes. ***
FTH: (4508): *** Fault tolerant heap shim applied to current process. This is usually due to previous crashes. ***
WM_ACTIVATEAPP
INITIALIZE DD/D3D START
END UNINITIALIZE DD
WM_ACTIVATEAPP
"
The game still runs ok, but it sounds as though it's the old midi files playing.
Any ideas what I may have overlooked?