I have configured my "ff7_opengl-0.7.10b" created by Aali to the following:
# set the window size (or fullscreen resolution) of FF7
# 0 means use original resolution (whatever ff7.exe provides)
# preserve_aspect adds black borders as needed to preserve a 4:3 aspect ratio
window_size_x = 1280
window_size_y = 800
preserve_aspect = no
fullscreen = yes
This works well for me.