The text issue is due to the exe not being set to bc_exe in the settings.
The black screen is due to the video not playing.
The video not playing is because (from my experience) you have to unpack the iro and copy all the videos into the video folder. The converter should have made one for you in the main directory of the game.
As for the cloud model i'm not too sure. What mod are you using for it?
Well...
I thought that as well with the wrong exe-path - but it's the correct one (in my case: D:\Steam\steamapps\common\FINAL FANTASY VII\ff7_bc.exe)
The movie-path is set as well (in this case: D:\Steam\steamapps\common\FINAL FANTASY VII\data\movies)
I didn't get any error from the converter or such thing.
What's really strange is the following: 2
If I f.e. extract some iro archive to a folder, I can see the contents, f.e. seffect1_12.png" from the spell textures pack there, I don't find it in the FF VII folder although the mod is active and configured.
Shouldn't they be extracted into the folders? o.O
Everything looks so simple on EQ2Alyza vid but something is really messed up atm