The graphics may not be up to date, but that's not what makes a good RPG. FF7 is what makes a good RPG.
First up, soundtrack. Awesome. Some people say the transition to PC made it worse. I disagree. It only became better. The only bad thing about it is that there's no chorus in One Winged Angel. But so what? If I want to listen to it with lyrics, I'll just play it on my MP3 player while fighting Safer-Sephiroth.
Gameplay is also great, and so is the storyline. Each character is unique with his/her own background and each discovers something about their past at one point or another. The materia system is very straight-forward but has its twists, which is good, because normal = boring. The battle system is even better, because of the turn based system. It can be realistic at time and unrealistic at others. It's realistic because if you are digging for an item in your backpack, it's not like the badguy is going to sit there and wait for you. He wants you dead! On another note, it's unrealistic because 1. There is no blocking, and 2. You can only attack once per turn. Oh well, I can deal with that.
Overall, the game it great, the only drawback is its many technical glitches because it is played on newer computers. My advice: get it off of ebay or something. You might end up with some tough competition, but trust me, it's worth it.