I've got a similar problem as Joshua.
I just boarded the airship, Cait Sith says it's now mine, and as soon as I dismiss the dialog, the game starts to run really slow. When I enter the door on the left of the screen, the sound slows even more, the screen fades to black, and that's it.
I tried with/without the dynamic interpreter, spu sync, frameskip/framelimiter, and software/OpenGL. In OpenGL mode, I get the same "yellow static" between every screen transition as a previous poster, including after going through the door.
Also, Tifa's limit break won't work anymore. It used to, but I don't know if it's because I'm now on disc 2 or some new area, or if it broke with a recent update. The limit break will activate, the red ground effect plays, then the camera switches to the target, then nothing happens. Music plays fine, character animations are still going, but no action happens.
I'm a developer by trade, so if the source is available, I wouldn't mind seeing if I could debug this myself. Or if you want my save games in order to look into it, let me know.
Oh, and I'm using a Galaxy S2 with android 4.1.2 (Jellybean).