Aali's driver only works for the PC version. So in essence, you would have to download a windows 98 emulator for the psp, then install ff7pc on that emulator, then run the game.
By that time though, you won't have enough ram left to even run the game.
Already looked into it.
There is a way to stream games from your PS3 to the PSP I think, but you'd have to install linux and the screen would look awkward.
Basically, it's not worth it. Stick with the PSX version on PSP