...I already made my guess.
It's probably a codec conflict of sorts.
I don't know how to fix that manually. I just know that after I had reinstalled Windows... such movie studdering and delays disappeared, on my machine. Mind you this was a complete reinstall, not a repair, but a reinstall on a blank partition. And I didn't have a sound delay...it was just a stop 1 second, go 3 second type of thing.
I had a harddrive failer, recently..... FF7 wasn't the only game that improved, after that new Windows installation. Of course...I'm sure the new harddrive has something to do with it, too. Old harddrive "was" failing, afterall.
Now that I think of it...probably had nothing to do with the software (such as a codec conflict).... Probably, completely Hardware related (harddrive). Except for one little thing.... the movies are played off the CD-rom, not the harddrive. So you're guess is as good as mine, as to why my movies played better after my harddrive crash, and a force, reinstallation of WinXP. Vitual Ram, maybe....but why would a 1gig system use V-ram?
Anyway... I think the end result is the same. I don't thing the FF7 program is your problem....I think it's something outside the program. Something 3rd party.