You can only use the FF7.exe from the patch if the 8 bit pallet test says Failed. Only if it says failed do you use the FF7.exe from the patch and check any of the Nvidia boxes. (You'll need to disable the 8 bit pallet with Rivatuner, to do it this way)
If it says Pass, you must use the orginal FF7.exe and don't check any boxes.....however with the forceware drivers, you probably going to have grid lines. To get rid of those you'll have to do the Paste and Cut thing with Rivatuner...Details are in the link below. Also I hear that FFSA is broken in the latest Drivers, I don't know if it's true or not...but if it is, you'll have to go back one driver to get rid of the gridlines.
http://forums.qhimm.com/viewtopic.php?t=2670