It does the same as the 'New to Old patch'. But it allows other languages to work with the english FF7.exe (1.02). However you will loose any of the new (and most sensless) features of the rerelease.
The game will render in OpenGl2 (Ali's driver) instead of DirectX9, the change is not visible. The bad sideeffect is that the new musik system will not work, which means you have to use 'FF7 Music' instead of.