After 2 days of messing around I finally got FF7 working nearly perfect in D3d mode (my 3D models still don't move during the cutscenes... I can live with that, there seems to be no fix). I mostly followed the guide on (1.2 patch, dissable aa and af... the usual) and then did 2 extra things:1) I downloaded the omega drivers for my mobility X700 (my card isn't supported by ati itself, as are all ati cards in acer laptops. You need acer drivers (mostly quite old), or these tweaked omega drivers that install on nearly all ati cards) 2) I dowloaded 3Danalyze (tommti systems, freeware), and entered the vendor and device id codes for the 16mb original tnt (V-id:10DE, D-id:0020). Before, my backgrounds were completely messed up, my main menu aswell (grey instead of white text, a pink outline in nearly all white objects...), now everything is fixed.

I also changed the registry value for the video config but I dont know if it did anything;
in hkey_localmachine/software/microsoft/direct3d/drivers/direct3dhal/ copy the values in the GUID entry and paste them in the hkey_localmachine/software/squaresoft/final Fantasy VII/1.00/Graphics/dd_guid entry. I read it helps somewhere (just don't open the config utility as it will overwrite modified entry)

Hope I helped.