Unfortunately, it seems to be the disc, guys. My friend's NTSC PS1 console didn't read it either and ended up with a black screen and spinning CD as well (no sounds of static though). The CD doesn't have any visible scratches or anything, yet it doesn't work for one reason or the other...
Ah well.
On a side note, does anyone know a place that would still sell original NTSC FF7? It's a great game, and buying it again won't be a waste of money for sure (this time, I'll make sure I make a backup though...).