I can't complain about the materia problem much. Mine shows up but usually flashes on and off the screen. I can still see where it is so no big deal to me, and honestly, there's not that many pieces of it you pick up off the floor like the Restore materia.
And while I'm in here I might as well note a couple interesting things I've seen so far with this.
When I went in to save Aeris and Barret blasted the holding tank thing, it never stopped glowing so I couldn't see where the materia was in the tank.
The motorcycle chase was insanely fast for some reason and I'm still not sure how I was able to hit anyone.
When I'm doing Cloud's past in Kalm, when Tifa goes to confront Sephiroth, she's carrying a Buster Sword instead of... whatever it was Sephiroth uses, but when Sephiroth grabs it back it turns back into his own blade.
And a quick critique: Red XIII seems kinda scrawny to me.