Well that app.log shows that Aali's driver isn't running, so i guess something has gone wrong, a few people in the past have complained they couldn't open FF7CONFIG, i am unsure if they ever fixed it
if you can't run FF7CONFIG anymore you could try deleting the registry entries by opening REGEDIT (just type that in your search box on your startmenu) and then in the window that comes up make your way to
HKEY_LOCAL_MACHINE\SOFTWARE\Wow6432Node\Square Soft, Inc.\
then delete this, then reinstall my installer and hopefully you will be able to open FF7CONFIG again (with any luck), just remember to set everything correctly (double check on the graphics page that 640x480 FULLSCREEN is ticked and that the drop box says CUSTOM DRIVER then set anything in the SOUND and MIDI screens then hit OK)
And also never forget to run it as Admin.
Done that, it allowed me to setup the FF7Config (double checked everything was set as it should be, custom driver, 640x480 fullscreen, midi enabled etc), same issue. However I decided to look in the APP.LOG and noticed the last line;
Failed to load: C:\Program Files (x86)\Square Enix\Final Fantasy VII\data\field/flevel.lgp
Upon investigation, it appears I don't have this file? I have a flevel.bak and a fflevel.lgp and even an flevel.lgp.bak() but no flevel.lgp. I've not manually modified this directory so am quite unsure as to what might be causing this now =/
Edit: Just to see what would happen I renamed the flevel.lgp.bak() and ran the game, it actually crashed with an error code this time, and APP.LOG looked like this instead;
INITIALIZE DD/D3D START
DIRECT DRAW 2
TOTAL 1026228224 FREE 1022031872
DD MODE: W 320 H 200 P 320 RGB 1 BPP 8
DD MODE: W 320 H 200 P 640 RGB 1 BPP 16
DD MODE: W 320 H 200 P 1280 RGB 1 BPP 32
DD MODE: W 320 H 240 P 320 RGB 1 BPP 8
DD MODE: W 320 H 240 P 640 RGB 1 BPP 16
DD MODE: W 320 H 240 P 1280 RGB 1 BPP 32
DD MODE: W 400 H 300 P 400 RGB 1 BPP 8
DD MODE: W 400 H 300 P 800 RGB 1 BPP 16
DD MODE: W 400 H 300 P 1600 RGB 1 BPP 32
DD MODE: W 512 H 384 P 512 RGB 1 BPP 8
DD MODE: W 512 H 384 P 1024 RGB 1 BPP 16
DD MODE: W 512 H 384 P 2048 RGB 1 BPP 32
DD MODE: W 640 H 400 P 640 RGB 1 BPP 8
DD MODE: W 640 H 400 P 1280 RGB 1 BPP 16
DD MODE: W 640 H 400 P 2560 RGB 1 BPP 32
DD MODE: W 640 H 480 P 640 RGB 1 BPP 8
DD MODE: W 640 H 480 P 1280 RGB 1 BPP 16
DISPLAY MODE MATCH
DD MODE: W 640 H 480 P 2560 RGB 1 BPP 32
DD MODE: W 800 H 600 P 800 RGB 1 BPP 8
DD MODE: W 800 H 600 P 1600 RGB 1 BPP 16
DD MODE: W 800 H 600 P 3200 RGB 1 BPP 32
DD MODE: W 1024 H 768 P 1024 RGB 1 BPP 8
DD MODE: W 1024 H 768 P 2048 RGB 1 BPP 16
DD MODE: W 1024 H 768 P 4096 RGB 1 BPP 32
DD MODE: W 1280 H 600 P 1280 RGB 1 BPP 8
DD MODE: W 1280 H 600 P 2560 RGB 1 BPP 16
DD MODE: W 1280 H 600 P 5120 RGB 1 BPP 32
DD MODE: W 1280 H 720 P 1280 RGB 1 BPP 8
DD MODE: W 1280 H 720 P 2560 RGB 1 BPP 16
DD MODE: W 1280 H 720 P 5120 RGB 1 BPP 32
DD MODE: W 1280 H 768 P 1280 RGB 1 BPP 8
DD MODE: W 1280 H 768 P 2560 RGB 1 BPP 16
DD MODE: W 1280 H 768 P 5120 RGB 1 BPP 32
DD MODE: W 1360 H 768 P 1360 RGB 1 BPP 8
DD MODE: W 1360 H 768 P 2720 RGB 1 BPP 16
DD MODE: W 1360 H 768 P 5440 RGB 1 BPP 32
DD MODE: W 1366 H 768 P 1366 RGB 1 BPP 8
DD MODE: W 1366 H 768 P 2732 RGB 1 BPP 16
DD MODE: W 1366 H 768 P 5464 RGB 1 BPP 32
Ramp Emulation
Microsoft Direct3D Mono(Ramp) Software Emulation
RGB Emulation
Microsoft Direct3D RGB Software Emulation
Direct3D HAL
Microsoft Direct3D Hardware acceleration through Direct3D HAL
EXCLUSIVE MODE
16-BIT Z BUFFER CREATED IN SW
HAL
HEL
TEXTURE FORMATS:
PALETTE 1 BITS 4 RGBA 0:0:0:0
PALETTE 1 BITS 8 RGBA 0:0:0:0
PALETTE 0 BITS 16 RGBA 5:5:5:0
PALETTE 0 BITS 16 RGBA 5:6:5:0
PALETTE 0 BITS 32 RGBA 8:8:8:0
PALETTE 0 BITS 32 RGBA 8:8:8:8
VIEWPORT INITIALIZE
VIEWPORT 2 INITIALIZE
LOCK UNLOCK TEST
BLEND MODE NOT FOUND
BLEND MODE NOT FOUND
BLEND MODE NOT FOUND
BLEND MODE NOT FOUND
MATRIX INITIALIZE
INITIALIZE DD/D3D END
ERROR: COULD NOT OPEN FILE C:\Program Files (x86)\Square Enix\Final Fantasy VII\ff7input.cfg
initializing sound...
creating dsound primary buffer
reading audio file
loading static sounds
sound initialized
INITIALIZING MIDI...
selecting device 0:Microsoft GS Wavetable Synth, mid=1, pid=27,
midi data type: GENERAL MIDI
using midi data file: C:\Program Files (x86)\Square Enix\Final Fantasy VII\data\midi\midi.lgp
midiOutGetVolume returned: ffffffff
MIDI INITIALIZED
BLEND MODE NOT FOUND
BLEND MODE NOT FOUND
BLEND MODE NOT FOUND
BLEND MODE NOT FOUND
BLEND MODE NOT FOUND
BLEND MODE NOT FOUND
BLEND MODE NOT FOUND
BLEND MODE NOT FOUND
BLEND MODE NOT FOUND
BLEND MODE NOT FOUND
set music volume: 127
MIDI set volume: 127
10036743060f 127 = 127
Entering MAIN
Exiting MAIN
START OF CREDITS!!!
BLEND MODE NOT FOUND
BLEND MODE NOT FOUND