I'm really lazy so I'll copy Slayersnext Tutorials or steps.
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Instructions: To make work the textures, you should make:
    - Decompile your battle.LGP.
    - Paste on the created folder the files you just download.
    - Open Pcreator, load the .3ds file in the rar and select in 'Options'>Battle Model.
    - Then go to 'File' and select 'Open battle HRC'...
    - Open RTAA for Cloud
    - Open RUAA for Tifa
    - Open RVAA for Aeris
                 ...
      and set the numer of textures to 10. Then close Pcreator.
    - Compile again the battle.LGP with LGPTools.
    - put in FFVII/data/battle floder.
    - Play with the new Swords!.
For more info you can go to his thread right here. 
http://forums.qhimm.com/index.php?topic=6617.0Obviously you will need to open rtaa only since you're only doing Cloud's weapons. That's about it.