If you are using a CD then yes there is a patch for this. YOu can download it here:
http://rapidshare.com/files/20355534/1._ff7_v1.02_official_patch.zip.html
If you are using the Ultima Edition(which most people do). There are a number of solutions you can try.
1.Open up FF7 Configuration. And under the Graphics tab, change the Display to software render. Do not use Direct 3D until you are past this part. Also change your resolution to 320x.
2.You can download that Patch, but it requires a CD. You can fake that by, by using a fake image CD. I have not yet found a CD Crack that works for that patch yet.
This problem is usually caused by installing the FF7 XP Patch. I would also recommend upgrading to Windows XP Home Edition, Pro Edition would be the best. Vista fails hard for gaming, so I do not recommend that. If this still doesn't work write me at:
aaron2008xyahoo.com