I've discovered something....
I don't know which FF7.exe has been patched with the Chocobo Race thing.
But, It seems that with the new Detonator drivers the 8 bit pallet function has been, finally, repaired.
The 29.42's work perfectly in FF7 with Direct3D Hardware Acceleration. The only thing you need to use from the TNT patch is the FF7config.exe. DO NOT use the FF7.exe from the TNT patch, the game will crash if you do....unless you like using Rivatuner to disable the 8 bit pallet.
No need for Rivatuner, anylonger.
The new drivers also work fine with FF8.
So, I guess I'm asking, Did you patch the original FF7.exe or the TNT version? Because, I don't think the TNT version is needed anymore. That is, unless Nvidia decides to break the driver in the future.