I found the problem and the answer is...
Drum roll....
User error...
First I want to thank e1sunz & Kompass63 who tried to help me along the path to troubleshoot this issue.
Now for the answer...
When I re-installed my pc I told myself wow those icons are small on my desktop let's make it bigger! so I changed my DPI.
for those who don't know what DPI is. DPI you can make your fonts and icons and letter bigger on your screen which is easier to read as in my case 3 meters at least from the screen...
DPi should not be an issue in modern games but older games it can be because, DPI was not popular in those days well using your tv as a monitor screen or for people with bad eyesight.
The solution boils down to the game programming to ignore a certain value or to retain certain value and etc.
Sadly this has been an oversight when ff7 1998 version was first developed not 2012 version.
As in my case DPI blew (zoom) up EVERYTHING including the video...
Changing the DPI to 125% to 150% is fine beyond that can get tricky which was in my case 250%
This issue was whacking my brain for days. ah well live and learn...