I don't really feel all too confident in saying this, but I think any remake, port or other re-vitalisation of FFVII will not appear on PSP.

Crisis Core and Dissidia have done remarkably well for PSP games. In fact they are the 4th and 11th most popular games on the system respectively. However the PSP has always been a weak seller in comparison to the DS.

Sure, the PSP would allow for better graphics. But if you want to play a game for the graphics, you clearly can't appreciate the most important pieces of that game.

With a remake for a console that is more powerful than the original console, you run a much greater risk of something getting changed, and with a game as popular as FFVII, it would likely be impossible to please every player or even every type of player with additions or subtractions. We witnessed that on the AFD thread that Cain created, in which some people complained about the removal of the dating-mechanics.

Also the DS is more than capable of supporting a port of the original game. Since the FMVs were actually the reason that the game was on 3 discs as opposed to 1. The original game could technically be played through using a single disc, with a little help from the debug room, as the entire game was available on all 3 discs, with the differences being which FMV was stored where (which is why the game plays fine if you advance using the debug room and the wrong disc - but the wrong FMV is played when you get to an FMV area).

Basically if they can do it with Resident Evil, and add in extra features to that, a full port of FFVII to DS would be possible. And it would sell very well, seeing as it would be the easiest way to get a portable version of the game.