Okay, so I actually came across 2 bugs relatively close to each other. 1st right after the Plasmabuster fight, when the scene supposedly plays out with him exploding on the bridge, the FMV immediately cuts to the 1st reactor video explosion right when AVALANCHE is escaping. The field models and everything remain intact, but the entire background is replaced with that 1st reactor explosion sequence. I thought that was pretty interesting lol.
2nd, After Cloud plummets to the sector 5 slums and lands in the church, I wake up...and to my surprise, find this lovely friend greeting me when I wake up.
Now I double checked by playing through the same area of the game twice to see if I could duplicate the same bugs again, and sure enough, they are still in there. This is the updated IRO from April 11th so I'm not sure if these bugs are even present in the main installer, but I just thought I'd let you know.
These are the current mods I have loaded in 7th Heaven as well, just for reference.
Sorry for the uber long post Sega Chief!