Well in answer to your question what am I supposed to do:
1) Put the CD ROM in the drive.
2) Open up FF8FMV
3) Click on the 3 dots (...) by select an archive.
4) Navigate to the FF8 CDROM and double click on the .pak file that is there.
5) A list of all the FMV's will then appear for you to extract of view. Its quite simple realy. If you still can't get it to work then its your computer and not the program.