It could be because The 8-bit palleted textures either fail or have dots by them, depending on what setup I use.
Here is the log
INFO: FF7/FF8 OpenGL driver version 0.7.11b
INFO: Auto-detected version: FF7 1.02 US English
INFO: ATI Technologies Inc. AMD Radeon HD 7700 Series 4.5.14008 Compatibility Profile Context 21.19.137.1
INFO: Using PBO
INFO: Found swap_control extension
GLITCH: Unable to turn on vsync
INFO: Max texture size: 16384x16384
INFO: Number of texture units: 8
INFO: Original resolution 640x480, window size 640x480, output resolution 640x480, internal resolution 640x480
INFO: FBO extension detected, using fast scaling/postprocessing path
INFO: FFMpeg movie player plugin loaded
INFO: FFMpeg version SVN-r25886, Copyright (c) 2000-2010 Fabrice Bellard, et al.
INFO: No shaders, codecs with YUV output will be slow.
INFO: Loading external library Multi.dll
LOCK UNLOCK TEST
MATRIX INITIALIZE
INITIALIZE DD/D3D END
ERROR: could not open file C:\Games\FF7\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:\Games\FF7\data\midi\midi.lgp
midiOutGetVolume returned: ffffffff
MIDI INITIALIZED
set music volume: 127
MIDI set volume: 127
100% of 127 = 127
set music volume: 127
MIDI set master volume: 100
MIDI set volume: 127
100% of 127 = 127
Entering MAIN
Exiting MAIN
START OF CREDITS!!!
INFO: C:\Games\FF7\data\movies\eidoslogo.avi; vp8/vorbis 1280x960, 30.000000 FPS, duration: 11.133000, frames: 334
INFO: slow output format from video codec vp8; 0
ERROR: couldn't lock sound buffer
set music volume trans: 127->0, step=60
MIDI set volume trans: 127->0; step=60
MIDI stop - OK
MIDI stop - OK
END OF CREDITS!!!
Entering MAIN
set music volume: 127
MIDI set volume: 127
100% of 127 = 127
Exiting MAIN
START OF MENU SYSTEM!!!
ERROR: unhandled exception