This is a complete overhaul of the dialogue that is intended to seem more natural to American audiences, in terms of fixing grammar mistakes or simply making it sound more convincing. As an added bonus, anything censored will be uncensored to further enhance the dialogue. This will require a complete overwrite of the "flevel.lgp" file.
This is a small example showing what the tool used, known as Loveless 2.8 (made by Ficedula) is capable of. You can edit text easily with a simple UI.
You should add loveless to the ff7 downloads section.