This is a weird problem I had that baffled me for a while. What happens is that FF7Music appears to ignore any ini file in it's directory but seems to be keeping it's own configuration. The problem is vista trying to be too smart for your own good. It's not keeping the .ini file with the actual program instead it can be found in
C:\Users\*your user name*\AppData\Local\VirtualStore\Program Files\Square Soft, Inc\Final Fantasy VII\ficedula
Assuming you are using the default paths.
Simply go to that location and replace the .ini
I hope this saves someone some of the hassle I went through figuring it out.