EB usually have old console games in their discount bins, you might find it in there. A lot of pre-owned stuff too.
If you don't mind downloading a PC version look for FFVII Ultima Edition. It has all sorts of 3rd party fixes and tweaks. It definitely runs on XP, I was playing it a few months back. I was playing it with my Logitech Rumblepad and on the TV. It looked way smoother than the Playstation version.
As for the music, just install the Yamaha XG driver. I think Ultima Edition has the XP compatible version on the ISO as well. If not you can always find it around the net, just search for Yamaha SOFTSYNTH S-YXG50 v4 WinXP. I like the Yamaha driver, it enhances all my midis.
The other option is to download the Playstation ISO's, and run it with a PSX emulator (I recommend ePSXe). I tried that and it's a great alternative as well.
Oddly enough I actually have a PSone sitting right here, but it's PAL and all the TV's in North America (as far as I've seen) are NTSC. Man, everything is multi-system back home. And for some retarded reason every single video system converter in Canada is NTSC to PAL, and they're expensive! Apparently it's for people who are going to another country with a PAL system. Logically wouldn't you buy that over in the PAL country?!