The file is zipped in .lzh form. U should be able to use most unzip
program to unzip it.
  Since the CD format of FF7 is not directly acessable in Win95, u may need
viewers like Norton File Manager or something like that to see the filenames
in the CD. BTW if u can see the files in the CD it's ok.
  Some of the PS movie files can be viewed with PSXVideo directly, like the
.mov files. Just copy them to your harddisk and start viewing. However, for
.str files u MUST use CDXAFIND.EXE(or CDXA.EXE) to extrat the movie files
included in the file. For example, if u wanna extract a file called
"test.str", type cdxafind e:\movie\test.str abc (assumed your CD ROM drive
is e:), and a series of files named "abc000x.str"(x is a number) will be
created. These files can then be viewed with PSXVIDEO.
  If u have enough space, the highest quality AVI will be the uncompressed
one of course. If not(most probably), u need compression. The latest Indeo
compressor which supports MMX and bi-directional prediction is the best
choice. U can download it from Intel web site. Note that the encoding
speed of this compressor is quite slow.
  If u have MPEG encoder(like me), the best way is to make an uncompressed
AVI and then encode it to a less-than-1/20 MPEG file(the 400+ M opening AVI
is kept in my harddisk with less than 20M!!! Since I got the FF7 CD sound
track, I even mix the music into the movie file!!!!!).