Ok I did that and I don't see any difference, the fonts are still blocky and the menu imgs look the same.
Here is what the file looks like
# ff7_opengl-0.7.9b config file
## USER OPTIONS ##
## If you just want to play the game, these are the only options you'll want to change.
# set the window size (or fullscreen resolution) of FF8
# 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 = 1920
window_size_y = 1200
preserve_aspect = no
fullscreen = yes
# mod directory
# subdirectroy of mods/ where textures will be loaded from
# does not affect the old external textures feature, those should still go in textures/
mod_path = .
# check your driver settings if this option doesn't seem to work
enable_vsync = yes
# allow FF8 to use linear filtering for its textures
# some things look slightly better with this option on, but alot of textures just lose their detail
linear_filter = off