Dammit these rumors piss me off. They will get some peoples hopes up, but they just make me mad because VII-2 is just about as likely as a second FF:TSW movie
More bloody evil rumours. FFVII was the best FF in history, I can easily argue that, claims of a sequel after various staff have played down the idea, is luicrous.
Actually, I'd like to put all of these rumors to rest. There is no Final Fantasy VII-2 game for PSP or PS2. What is in current production, though, is a DVD called Final Fantasy VII:Advent Childeren. This is a story that takes place 2 years after the end of the game. Square-Enix is not sure if they will release it in America, but hopefully they do since that would be totally gay if they didn't. One rumor I've been hearing is that they will be releasing Final Fantasy VII on Gameboy Advance, but that seems unlikely