Info:
1. This is an Enhancement, not a mod, which is easy, safe and free to use.
2. This Enhancement Adds better lighting and filters to make the game look and feel better and yes one of the filters is Scanlines. Why Scanlines? Because FFVII was originally designed to be on a CRT Screen[en.wikipedia.org] which has Scanlines[en.wikipedia.org] and they designed the game to use the Scanlines as a filter to blend everything together!
Note: I added the option to download the enhancement without Scanlines to the download links below.
3. This Enhancement is setup to make FFVII look and feel like it did on the Original PlayStation with a CRT Screen back in 1998; also it's setup to make the GFX look more natural which is Easer on the Eyes! ;)

Instructions are below the Screenshots.

Comparison video:
http://www.youtube.com/watch?v=7G3ThuEInaY

Screenshots:
To See the FULL effect click the images 2 times to go full sized.
http://steamproxy.net/sharedfiles/filedetails/?id=160786943
http://steamproxy.net/sharedfiles/filedetails/?id=160786911
http://steamproxy.net/sharedfiles/filedetails/?id=160786925
http://steamproxy.net/sharedfiles/filedetails/?id=160786971
http://steamproxy.net/sharedfiles/filedetails/?id=160786983
http://steamproxy.net/sharedfiles/filedetails/?id=160786993
http://steamproxy.net/sharedfiles/filedetails/?id=160786892
http://steamproxy.net/sharedfiles/filedetails/?id=160787044
http://steamproxy.net/sharedfiles/filedetails/?id=160786880

Instructions:

1. Download the fully set version by me from here:
*Just remove the "-"*
(A)Normal Version -> -http://www.mediafire.com/download/gebgf9c4qz3d7em/SweetFX1.4+set+for+FINAL+FANTASY+VII%2BVIII.rar
(B)Without Scanlines -> -http://www.mediafire.com/download/f9hav58662x4jj6/No-Scanlines_SweetFX1.4+set+for+FINAL+FANTASY+VII%2BVIII.rar
(C)Advanced Version -> -http://www.mediafire.com/download/yz85zhd8u76obh5/Advanced_SweetFX1.4+set+for+FINAL+FANTASY+VII%2BVIII.rar
Note: The Advanced version requires a mid-to-highend rig to make the post proccessing effects run smoothly and it will run poorly on older slower rigs. Also make sure you Turn off "Linear Filtering" in the game's Launcher settings.

2. Extract All the files and folders AS-IS, using WinRAR[www.rarlab.com], to your game location; Mine is 3. Launch FFVII and enjoy FFVII The way it was meant to look!
Please Vote on this guide!!! Thanks.

Tips Q&A:

Q:: My Game is blury with this enhancement...
A:: Turn off "Linear Filtering" in the game's Launcher settings.

Q:: This enhancement makes my game too dark...
A:: Make your monitor brighter.

Q:: I'm Using Windows 8 and the game crashes with this enhancment with an unknown error...
A:: There's New info that some programs that display OSD(On-Screen-Display) FPS are the cause of the game crashing with this enhancment while using Windows 8. Here's a list of know programs that cause this issue:
1: Evga Precision X.


-Enjoy

Note: This also works for FFVIII here's the guide for FFVIII: GFX Enhancment for FFVIII