If you look at the back of the FFVII-PC case, it has an ad for Daikatana. That was not a good time for Eidos to begin with. And I think Eidos was just the distributor anyhow. But, the port is like 5 years old. A lot of things have changed with video cards and operating systems. And FFVII-PC is not that successful in terms of sales.
I, in fact, have a Mobility Radeon 7500 (laptop) with XP, and it works like a charm. You might want to try to restore video card settings to their defaults and use software rendering.
And FFVIII is worth $15, but it's not that great. Worth a play through, though. But don't buy it from your friend, because it costs $10-15 off-the-shelf as a Greatest Hits game.