Well, I got myself a Nvidia 6800GT primarily for flightsimming to replace my old ATI card. I played this game while on the ATI card and had to use software rendering.

The PC version of FF7 has only been optimised for Nvidia RIVA (which are nowadays prehistoric) display cards. There is much less pixelation on Hardware rendering using the RIVA as I have tried and tested on my parents' PC. (Very lucky that IBM had a RIVA in it!)

Well, my 6800GT is by no means a RIVA but I gave FF7 a go on Hardware Rendering and after a little tinkering - it worked!

Don't lose hope guys, FF7's hardware rendering apprently works even on today's Nvidia cards. Turn Antialiasing and AF off, pick the "TNT" in the FF7 Configuration Utility and there you go! Good bye to pixelated scenery and battles!