I am at the point where Cloud and his members find that 'there is hope'. Refer to this guide (event 27) http://www.uff9.net/ff7/?section=walkthrough&disc=2 to find where exactly I am.

After they walk through the waterfall and they learn there is hope, you leave the waterfall and begin to head back. As soon as your 10 feet from the waterfall, Cait Sith calls. As soon as they say what they have to say:

Cait Sith: They're moving the black materia!
Cloud: Moving it where!??

The screen goes black and just sits there. I was wondering:

1. Is there a video there that I could convert to AVI and just have it play?

2. If its not a video, what do you reccommend I do?

My stats:
Processor: AMD Anthlon 3000 Processer (2.0Ghz), 3D NOW, MMX
RAM: 2056 Geil Ram
Video Card: Geforce 6800GT 256mb (Version 6.14.00108421)
HDD Space Left: 30gb
Sound: Sound Blaster Audigy

I have the Chocobo Patch, as well as the 1.3 patch to the game. I also have this FF7 Configurator. I have the option to change the rendering from Software to hardware accelleration but the menu is all distorted and the game appears black when I try it. Anyways, back on topic. The game goes black after Cait Sith finishs (i believe) what he has to say on the PHS. Any help appreciated.

well since no one knows how to fix this... i need to beat this gameee!!!! anyone suggest any way of somehow being able to ever play this? Is it possible to make a Pc save file onto a memory card and load it into a ps1? idk, i want to play this game

The black materia crash is a well-known crash.
You really should use all the fan-made patches for the game. Even Eidos site links to one of the fan-made patches. There is even improved models for the game (!).
Here is my Best-Quality Graphics and Sound Final Fantasy VII page:
expertmultimedia.com/protoarmor/gamepage/finalfantasy-ff7bestquality.html

And if that doesn't solve your problem, go to

forums.qhimm.com

that's where I learned all I know about fixing and improving Final Fantasy VII

Good luck have fun,
ProtoArmor