Kernel.bin is the same for both versions of the game, so that means the data should be universally decyperable.
Looking at the first few data files in kernal.bin. they *APPEAR* to be inital values that are placed into memory. They are highly structed, but have no data, just a buch of FF FF FF placeholders.
kernel2.bin (PC) is odd. It's non compressed and seems to contain "leftover" data. "Attack with Eqipped Weapon" is one of the strings. in there. I can't read it very well because FF7 uses that goofy ASCII system.
I wonder, does /BATTLE/TITLE.BIN contain the opeing credits? I'll have to see that when I get to battle one of these years...
ADDUNDUM:
The first 9 files in Kernel.bin are inital values to....umm... whatever they are.
The others are all definitions.
Upon closer examination, the readable bits seem to be the help files for the menu system. I don't know if the data before it is. It might be the data for the object iteself, or menu "commands"
ADDUNDUM 2:
10-27 seem to all have the same format, just with different amounts of "objects" in them...
it's 2:30am . My face is blurry. I'm exporting a new version of Gears to PDF right now. You can read up on how the kernel manages the savemap and VRAM now. I'm burnt out and going to bed. (WWW button for new verion of gears)
ADDUNDUM 3
I was wrong, in 10-27 it's just text with a pointer table at the beginning. That's good as That kills off 60% oif the data. 1-9 are still unknown.