http://bugs.winehq.org/show_bug.cgi?id=29185
--- Comment #3 from Andrew Eikum aeikum@codeweavers.com 2011-12-05 07:52:16 CST --- Thanks for the log.
Looks like this is the problem: 0009:warn:dsound:get_mmdevice No device with GUID {bd6dd71a-3deb-11d1-b171-00c04fc20000} found!
It seems FF7 is storing the device GUID, and then requests that device on next launch and exits if the device no longer exists. Since we reimplemented dsound on mmdevapi, the device GUIDs have changed so your old prefix has an invalid device GUID stored.
Can you reinstall into a clean wineprefix and see if it starts working? Or, you might be able to reselect a device using the config tool (the demo's FF7Config.exe doesn't seem to let me select the device, maybe the full game does?).