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N.B. This is a guide to the original FFVII.
When your party members take damage to their HP, their Limit Break gauge fills. Once the gauge is completely full, that party member can perform a Limit Break. Limit Breaks allow a party member to take a powerful action.
N.B. Limit Breaks always count as long range, even if the party member using the Limit Break doesn't have a long range weapon or the Long Range Materia equipped.
Cloud
Level 1
Braver - Attacks one enemy
Cross Slash - Attacks one enemy, with a chance of paralyzing them
Level 2
Blade Beam - Diffuses after hitting one enemy, thereby hitting all enemies; the 1st enemy hit suffers higher damage than any others
Climhazzard - Attacks one enemy
Level 3
Meteorain - Continuously attacks multiple enemies
Finishing Touch - Removes all enemies from battle; or if that doesn't work, attacks all enemies
Level 4
Omnislash - Continuously attack multiple enemies
Barret
Level 1
Big Shot - Attacks one enemy
Mindblow - Reduces one enemy's MP
Level 2
Grenade Bomb - Attacks all enemies
Hammerblow - Removes an enemy from battle; if that doesn't work, does nothing
Level 3
Satellite Beam - Attacks all enemies
Angermax (Ungarmax) - Continuously attacks multiple enemies
Level 4
Catastrophe - Continuously attack multiple enemies
Tifa
Level 1
Beat Rush - Attacks one enemy
Somersault - Attacks one enemy
Level 2
Waterkick - Attacks one enemy
Meteodrive - Attacks one enemy
Level 3
Dolphin Blow - Attacks one enemy
Meteor Strike - Attacks one enemy
Level 4
Final Heaven - Attacks one enemy
N.B. When using one of Tifa's Limit Breaks, you will also automatically use all of her previous Limit Breaks, e.g. if you use "Final Heaven" you will also use all 6 previous Limit Breaks. However, for most of her Limit Breaks, there is a chance you will miss, depending on how well you time the rolling of slots.
If you land on two "Hits" and one "Miss", two "Hits" and one "Yeah", or on three "Hits"; you will deal a normal amount of damage for that Limit Break. If you land on two "Yeahs" and one "Miss", two "Yeahs" and one "Hit", or three "Yeahs"; you will deal an overpowered amount of damage with that Limit Break.
Landing on two or three "Miss" guarantees that that part of the Limit Break will miss. Likewise if you land on one "Yeah," one "Hit" and one "Miss".
Aeris
Level 1
Healing Wind - Restores HP to all party members
Seal Evil - Casts "Stop" and "Silence" on all enemies
Level 2
Breath of the Earth - Heals any abnormal status for all party members
Fury Brand - Fills both of Aeris' allies' Limit Break bars
Level 3
Planet Protector - Grants [Peerless] status (temporary invincibility) to all party members
Pulse of Life - Fully restores HP and MP to all party members; also removes any negative status and revives from KO
Level 4
Great Gospel - Fully restores HP and MP (and heals negative status and revives from KO) and grants [Peerless] status to all party members
Red XIII
Level 1
Sled Fang - Attacks one enemy
Lunatic High - Casts [Haste] on, and raises Defense % of, all party members
Level 2
Blood Fang - Attacks one enemy, absorbing HP & MP
Stardust Ray - Attacks all enemies
Level 3
Howling Moon - Causes beneficial abnormal status on self
Earth Rave - Continuously attacks multiple enemies
Level 4
Cosmo Memory - Attacks all enemies
Cait Sith
Level 1
Dice - Attacks, damage is based on random Dice roll
Level 2
Slots - Can have a number of effects, depending on outcome of Slots spin
Cid
Level 1
Boost Jump - Attacks one enemy
Dynamite - Attacks all enemies
Level 2
Hyper Jump - Attacks all enemies, chance of inflicting [Sudden Death]
Dragon - Attacks one enemy, absorbing HP & MP
Level 3
Dragon Dive - Continuously attacks multiple enemies, chance of inflicting [Sudden Death]
Big Brawl - Continuously attacks multiple enemies
Level 4
Highwind - Continuously attacks multiple enemies
Yuffie
Level 1
Greased Lightning - Attacks one enemy
Clear Tranquil - Restores HP to all party members
Level 2
Landscaper - Attacks all enemies
Bloodfest - Continuously attacks multiple enemies
Level 3
Gauntlet - Attacks all enemies
Doom of the Living - Continuously attacks multiple enemies
Level 4
All Creation - Attacks all enemies
Vincent
Level 1
Galian Beast - Transforms into Galian Beast
Level 2
Death Gigas - Transforms into Death Gigas
Level 3
Hellmasker - Transforms into Hellmasker
Level 4
Chaos - Transforms into Chaos
The higher you set a Limit Level for a party member, the slower the Limit gauge will fill up from damage. At Limit Level 4, you must take far more damage to be able to use a Limit Break when compared to Limit Level 1.
You learn each party member's Level 1, Level 2 and Level 3 Limit Breaks by defeating enemies with that party member and by using the party member's first Limit Break at each of Level 1, 2 and 3 a certain number of times. A standardized example follows.
Example Limit Breaks
Level 1
Limit Break A (learned by default)
Limit Break B - use Limit Break A several times.
Level 2
Limit Break C - defeat a certain number of enemies using this character.
Limit Break D - use Limit Break C several times.
Level 3
Limit Break E - defeat a higher number of enemies using this character.
Limit Break F - use Limit Break E several times.
Level 4
Limit Break G - use special Item on this character, after learning Limit Breaks A, B, C, D, E & F.
In order to use, for example, Level 3 Limit Breaks, you must first enter the Limit Breaks part of the menu, and set the Limit Level to Level 3. The same applies for Level 2 and Level 4, as well as if you want to return back to Level 1.
In order to learn a party member's Level 4 Limit Break, you must have obtained the correct Item. Furthermore, that party member must already have learnt all of their Level 1, Level 2 and Level 3 Limit Breaks. Then you can use the Item for the Level 4 Limit Break on that party member from the Item section of the menu.
Vincent and Cait Sith have fewer Limit Breaks total - with these 2 party members you just have to defeat a certain number of enemies (and in Vincent's case, use the Item for his Level 4 Limit Break). Cait Sith has one Level 1 and one Level 2 Limit Breaks, while Vincent has one Level 1, one Level 2, one Level 3 and one Level 4.
Level 4 Limit Breaks List
I find that party members' Level 4 Limit Breaks are not necessarily their most useful Limit Breaks. For example, both Yuffie's and Red XIII's Level 4 Limit Breaks are basically just like having a Slash-All or a Mega All Materia equipped and doing a Slash-All attack. This means these Limit Breaks are redundant once you've found the Slash-All or Mega-All Materia (full Materia Guide here), and levelled up to the point where Slash-All does 9999 HP damage - not too difficult at Level 99 with an ultimate weapon equipped (full weapons Guide here). For Yuffie, I prefer her "Doom of the Living" (second Level 3) Limit Break as it deals 15 continuous hits. With Red XIII, I'd also rather use one of his Level 3 Limit Breaks - either "Howling Moon" to put him into a powerful frenzy, or "Earth Rave" for 5 continuous hits.
Vincent also essentially uses the equivalent of either Slash-All or Flash when in Level 4 "Chaos" mode - I prefer to use him in Level 3 "Hellmasker" mode where he will either do 5 continuous hits or a powerful status attack.
With Barret, you're better off using "Angermax" ("Ungarmax") as it deals 18 continuous hits rather than the 10 continuous hits of "Catastrophe", as long as you have enough high AP Materia in his Missing Score weapon to ensure you can deal out 9999 HP damage with each of the hits (more on the Missing Score). Thanks to a Facebook fan who pointed this out to me.
With Cloud, Tifa and Cid I recommend using the Level 4 Limit Breaks - in Cloud's and Cid's case, you're dealing a heavy continuous attack ("Omnislash" or "Highwind"), while Tifa will deal up to 7 continuous attacks at Limit Level 4 ("Final Heaven" being potentially the last part).
Continuous attacks are so useful because they effectively allow you to deal more than 9999 HP damage per enemy, which is the maximum for a "normal" attack. For example, if Yuffie uses "All Creation" she can deal up to 9999 HP damage to each enemy in a group of enemies; but if she uses "Doom of the Living" she can potentially deal 9999 HP damage 15 times..!
With Aeris, I think it's a tough call between her Level 4 "Great Gospel" and her Level 2 "Fury Brand". Great Gospel will fully heal your party as well as granting [Peerless] status (temporary invincibility); while Fury Brand will fill both of Aeris' allies' Limit Breaks, which is wildcard in potentially a very powerful way.
Cait Sith only has 2 Limit Breaks - either Level 1 "Dice" or Level 2 "Slots". Although "Slots" can randomly kill ANY enemy in the game, it can also randomly give an instant Game Over. As such, I stick to Dice; which is also random, but not perilous.
Items Winnable from Battles Guide
Wall Market Cross-Dressing Guide
Turtle's Paradise Flyers Locations
Materia Selling Guide (make loads of Gil)
Ultimate Weapon, Emerald Weapon & Ruby Weapon