Hey all I finally managed to get FFVII working on XP SP3 after many different combinations of patches.
This is what I have installed to get it to its current (mostly) working state:
- The official 1.2 patch
- The SaiNt's High Res FF7PC Patch v1.00 (with integrated Jedwin's chocobo patch)
- YAMP (fixed my crashing problems)
- NPC Reconstruction Project for FF7PC 0.6 mod
Now it is finally stable, but Cloud and other active objects appear like this:


My specs:
XP SP3
Core 2 Quad Processor Q9450 @2.66GHz
2x GeForce 8800M GTX (SLi)
4GB RAM
Any help is greatly appreciated, cheers!