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I'm sure at one point I was able to play FF7 movies, but when I tried it recently it didn't work. STR and DAT are not standardised in any way, so I assume they just work together with the SDK version used to build the game - earlier or later SDKs have small tweaks or fixes and may not be compatible.Using Google's new code search thingy, I see that ffmpeg has a .STR file reader. It's GPL too so we can rip directly from this to play the movies directly from the disk.
Code segment is Here
ffmpeg also has the ability to read PSX ADPCM data too, so that solves some video/audio issues....
Have a look at your PSX doc: the MDEC packages that the hardware decodes are RLE compressed and not huffman compressed. I had a look at a raw file dump (with XA-headers) from the FF7 movies and the data doesn't match what is required for the MDEC.From what I understand, the STR in the FF7 disk is just catonated MDEC data in XA format. (It uses larger sectors in the disk) MDECs are hufman compressed in the first place.
concatenatedP.S.: catonated?