The demo depicted the introduction sequence to the original Final Fantasy VII, but was titled "Technical Demo for PS3." This means that it may or may not turn into an actual game. The PS3 can finally deliver Final Fantasy the way it gamers always wanted it to be delivered -- looking just like the CG cutscenes.
The demonstration was a complete recreation of the beginning to Final Fantasy VII using some "awesome, awesome" graphics (according to our staff on the scene). It's an exact duplicate of the original game. It could even be a full recreation.
UPDATE: We received word as soon as our boys made it back that Square Enix wanted to make it clear that there will not be a Final Fantasy VII remake for PS3. Repeat, there will not be a remake. But, there will be a new Final Fantasy game for the system somewhere down the line. We'll have info on that as it happens.