Ok:
Uninstalled the game and steam.
Installed Steam outside of Program Files, installed FF7.
Disabled Firewall, went through convertor, noticed that while it's processing movies, it comes up with a few errors about not having 'part1' in the ff7_enhanced_movies_1 location.
Though there are a bunch of files, part1.avi is not in there.
I'm using the graphics driver given above from Template.
Run bootleg, mount drive, set resolution and write config.
Still getting the 2 title screens fine, but when the game starts I get music, but only 3 big red triangles again.
Have added exceptions for files marked with anti virus, and added programs to 3d graphics list.
Running files as Admin.
Graphics settings are set to:
Display: Primary Display Driver
Render Using: Custom Driver
Can't seem to crack this problem. Any help greatly appreciated.