I think Costa's problem is the name of the output file of Img2Tex. If you don't change it explicitly when prompted, it will be the same as the input. So let's say you load a file called xxx.bmp. When you clik on the save button, the save dialog will say the output file is also called xxx.bmp. Thus you should change the name.
Please, keep in mind if the output file has a .bmp extension the resulting file will efectively be a standard windows BMP. Otherwise it will write a TEX file. If the resulting file doesn't work on FF7, please send me both the original and the resulting file and I'll take a closer look. Thanks.
I'd like to state also that 24bit textures work even with the original FF7 engine.They look awful, though, because they are downscaled to 16 bits by the driver. Also the transparency bit is completly ignored. Anyway, I don't see any reason to not use Aali's driver at this time.
By the way, I found out the current version of Kimera uses directional lights instead of Point lights. This is actualy a bug and it's the reason why changing the light position has very little impact. Also, due to this it's not possible to replace the flat shading by some nicer smooth shading. It will be fixed on the next bugfix.