jimmiq,
Originally it was thought that Square Enix would never touch such a "classic", though they did recently hint at doing just that, pointing out that there were "other projects" that "took priority at the moment" and directly stating that a "Final Fantasy VII remake might be possible at some point in the future".
I can't remember where I read it (I think it was somewhere on GameSpot Australia), but it came straight from their mouth, so you never know what might happen down the track...
Personally, I think if they were going to do that though, they'd need to stay true to the original (ie. only update the graphics & sound) and/or include/make available a copy of the original version as well, for those who don't want/don't like the "new" version or just want to feel nostalgic (this is particularly true if they were going to change the remake in some dramatic way however).
08/06/2009
Puckapunyal Military Area, VIC