I don't understand why do you find it so hard to fit the entier FF7 in one CD. In fact, I did it about two yeras ago. It's esay:
- Get the FF7 PSX version.
- Use one of those PSX video viewers to convert it to DivX 3.11 FastMotion (and MP3 for the sound). I tried other codecs and newer versions of DivX and none of them worked (the game just skiped the videos). You may think it will reduce the quality. Well, probabily, but in fact the videos looked horrible in the PC version already. There where one or two videos I couldn't find in the PSX version (no real matter, since those where already small enough). Some videos have different sound in the PSX and the PC version (for example, the one of the ending has no background music in the PSX version). In those cases (rare) you can switch the audio streams using VirtualDub.
I used the default options of the codec and they looked pretty well. The resulting size of all the videos was a bit higher than 150 Mbs.
The game won't ask for any CD with the right crack and you can make it get the files from wherever you want editing the windows registry properly.
Now, if you compress the whole game using WinACE, you can get a file of around 300 Mbs (videos included!). Probabily, it can be even samller using the new 7-Zip.
NOTE1: The game seems to refuse playing the videos if the codec decoding it isn't EXACTLY DivX 3.11. When you install the DivX codec, it asks if you want it to play also the 3.11 files. If you say no, then the videos will still be played by the old codec.
NOTE2: Sorry for my bad english
.