Sorry Genesis, I totally missed your post and just happened to catch it by chance. An over all update on this, mainly for fact at this point. So the Japanese games files are formatted differently, so they cant be used with other versions of the game. When I altered the JP files they'd get corrupt because the tools we use here would reformat them. So there's really only one option available for playing the Japanese version, and it involves VPN software and buying the game from the Japanese Square website with a Japanese IP. Modding wise you can use anything that only alters the .lgp files (and not the flevel!). So you can still update the models in the game (world, field, battle) as well as the soundfx and music. But you cant use any gameplay mods, or background mods that require aali's driver (the game absolutely cant be converted to support it, at least not without a convertor made specifically for that version of the game). So you have to do a bit of extra work to get the game and mod it (or just snag the lgp's from your modded Steam game), and you'll end up with two different copies installed (also, keep your JP game installer as you may need the VPN tool again to download it). Over all it's worth it if you can read Japanese or have an interest in learning it, but it wont have the modding potential of the Steam version. I may eventually do a version of this mod with just Romaji, but it wont be for quite some time.
As for your question about the Sephiroth mod, I'm not sure what you mean, but I assume it's something in the kernel, so probably not. The kernel is formatted differently from the version of the game we can mod, so we cant just plop it into our games, and we cant mod it because the tools will reformat it. You'd need to figure out what it is you want from the game, and try to mimic it in the Steam version.