...huh.
Ok, uhm, try rolling BACK your drivers to the 88.x.x series. Make sure you remove the newer drivers from your system first before isntalling older ones. I mean, unless your new card's archetecture completly does not support ff7s bgs at all.. well..
hmm..
i see you're using the npc recosntruction patch, too. What ya gotta do is install the high-res patch first. I don't think the npc patch does anything to teh exe, but try getting the game working with no patches first, then 1.02, then high-res. Then anything of Dzuigo's if you use it (battle swirl fix, tifa limit cheat, etc), then the npc patch. So uninstall the game and start from scratch, applying patches in the order i mentioned.