Sorry for jumping in on this thread, but I didn't want to clutter the forum with a new thread on the same topic. I hope that's okay. If not please feel free to delete and I'll post a new thread.
I came here looking for an answer to the same question. You say it will work with the 1998 version, but I have that and when I try to launch the game through 7H it gives me an error message saying it looks like I'm using an older non-steam version (I forget the exact words of the message now) and says I need to re-download from Steam. I don't own the game on Steam though so I can't do that.
It used to work with an old install (from the same discs) using 7H v2.x (I think - it might have been 3.x though) but I'd like to use the updated features of the latest version if possible. Is there anything I'm doing wrong? How can I get the 1998 version to work with the latest 7H?
The game is installed to C:\My Games\FFVII so it's not an admin-rights thing I don't think.
Thanks.
Edit: Nevermind - I got it working with v3.5.1.0 so that'll do for now. I have an issue with downloads on it though but I'll post a new thread for that.