Ok, I'm having a small problem with this, but first-off I'd like to say that this really adds a lot to what is probably still one of my favourite ever games and I'd like to thank SaiNt for all his hard work in what is no doubt an otherwise busy schedule. So thanks.
As for my problem, I don't have this issue when I run the .exe patched with FF7 patch v1.02, it only occurs when I apply one or both of the SaiNt patches. I did try running the game after only having applied the main SaiNt patch for higher res textures, thinking it might be some issue with forcing the game to run at a higher resolution (i.e. 1280 x 1024) but with or without the secondary high-res patch I see the same problem. Here are two screenshots to demonstrate the problem I am seeing:

With this one you can hopefully see that I've lost my horizon. It's hard to describe, but where I would normally expect to see white fluffy clouds down on the horizon I now see only a slightly wobbly looking ocean or landscape. Also... (this is impossible to capture in a screenshot, but...) as I switch my view down from over-head to this angle, I catch a brief glimpse of the clouds and stuff, before it gets clipped down to what you see in the screenshot, almost as if the viewing distance is somehow being trimmed down.

This is another part of the problem that I've noticed since getting the highwind. It's meteor.. or should be, but it's too low in the sky as you can see. It's like the whole sky texture has been shifted downwards to the point where I lose all my horizon clouds and get a nasty looking line and default blue sky where the top of the screen should really be.

(edit) Figured I ought to just take a quick screenshot of how it looks with the 1.02 patch applied, running in Direct3D 640x480 16bpp (Full Screen) and NVIDIA + TNT checked. This is how I always run it, but without the SaiNt's patches the horizon looks just fine as you can see. Help!
I know this isn't a problem with the patch as such, because I can see in some of those first screenshots on the first page that your world map looks fine, and you have clouds as you should have. I was just wondering though if anyone has any suggestions of how I might fix this problem? I love the patch, this is just really bugging me as I fly from place to place. It looks horrible! I've tried a few basic things like messing with desktop resolutions and color depths but I know that's just clutching at straws. Nothing seems to help. My gfx card is pretty new, an ATI Radeon X800 XL, very latest Catalyst drivers etc.
Anyone have any suggestions? If not, thanks for taking the time to read this all the same.