Got to see a couple of videos of this mod by GarlandtheGreat on Youtube. I must say I am very impressed by this and would like to recommend a few improvements to truly make this the ultimate conversion mod.
1. I'm sure everyone on this site is aware of the original translation's rather mediocre quality. The Reunion mod fixes this, however it is sadly not compatible with your mod. I would suggest, whenever you make your last version of this mod, to ensure that it is 100% compatible with The Reunion (At least the translation part). This would fix a major flaw in the original game and make this mod just that much more enjoyable.
2. Since your mod already spruces up the graphics a tad (Which you said was the original goal of this mod via altering palettes correct?), how about the sound effects as well? There is already a sound effects project going on that, sadly, seems to have been abandoned, but perhaps you, or someone else who is an audio expert, could continue the project...
http://forums.qhimm.com/index.php?topic=10237.03. The chest in the attic in Kalm that says something along the lines of "Locked...can't open it". I believe originally it was planned to have a Golem Summon Materia inside the chest, but the sidequest got cut. If the chest isn't already being used, perhaps a sidequest could be added that gives a key to open that chest and obtain the materia as a reward.
4. Perhaps in the new game plus, you could add back the Master Magic / Summon / Command materia, just so the Materia Overlord (Just about the only achievement where any amount of effort is needed.) could be acquired? Perhaps another suggestion would be to add in custom made achievements and a cool reward could be obtained once all of them are completed.
At the very least, please consider points 1 and 2. To prove to you how passionate I am about FFVII, and about how serious I am with wanting to see the re-translation + remastered SFX in this game, I am willing to donate a considerable amount of money via your donate link if that is what it would take.
Please at the very least respond back to my post even if you don't wish to incorporate any of what I said above. If anyone else has any thoughts they would like to share on my ideas, by all means, feel free to do so.
EDIT: Altered my suggestions after researching the Steam version and how to mod music a bit.