It worked like that for me (no video except for dialogue boxes until I go to menu and back) until I installed this patch:
08.05.2001 16:46 778,968 FF7BP1.EXE
It apparently contains a more recent (or at least different) version of the truemotion codecs than those included on the FF7 installation cd. Too bad that I don't recall the official name of that patch (google search for ff7bp1.exe finds nothing), ff7bp1 probably isn't it, since I found that file from a very old "collection" cd of mine, back when I still used to burn only using iso 9660 level 1 filenames to assure 101% compatibility with dos
Then, after I got the fmv sequences working, it started to crash every time I tried to enter the menu / a battle, and MS ACT sorted that out. Seems pretty stable now, I hope minigames will work too when I get to that point in the game.
Edit: that probably is ff7betap1.exe - the official patch that is meant for fixing the upside-down fmv problem on some systems. Conveniently, it seems to also fix this problem (at least did it for me)
Edit II: shit, looks like it was too early to celebrate. Today, I got to the escape from Midgar part, and the game throws up blue screens all the time in the motorcycle minigame and (after I got through that with a bit of luck) on the world map. What is strange is that these crashes do not seem to be completely random but instead depend on what is being rendered, since the motorcycle game crashed each time when I reached the EXACT SAME POINT on the road, and I suspect that when it didn't crash, I simply were on the other side of the road than when it crashed (thus affecting what is rendered). Also, I can make the game crash with 99.999% success rate by going to Kalm in the world map, and then rotating the view back&forth using pgdn/pgup, however, at certain other points on the map I can mess with the camera as much I like and it doesn't crash. Also, it seemed to be quite stable when using the overhead view (still occassionally crashing). Software mode throws up a BSOD each time a 2d background tries to scroll around
- I guess I didn't notice it earlier (ie. when trying to solve the blank screen / battle crash problem) because the first screen doesn't scroll (IIRC).
Any suggestions, or should I give up and get the psx version CD images from someone? (I consider myself to have the 'right' to warez it, since I've bought the PC version) I'd very much like to retain the high-res menus/fonts and perspective correction, though