I had to give up on doing this fight at LV1, too many things can go wrong. The FM version of this fight definitively wasn't meant for no damage, in fact I don't even know if what I did in the video is possible on PS2, as you don't use Strike Raid through the RC. To those who don't know, Sephiroth has a forced counter after 7 hits or 4 consecutive hits, and in FM he can break out doing whatever he wants (in English PS2 he'd always do the same slash move), so you have to pull a strike raid in order to survive. If he counters with the fire pillar you also have to get lucky as you need to dodge another teleport and he can do whatever he wants there as well. The second phase is actually the most consistent. The last phase is also terrible as he can counter with a fire pillar, or he can do heartless angel on the other side of the area. I saw a video on YT of someone looping him and getting lucky on not getting a fire pillar counter, I'm pretty sure the chances are very slim. As for the level, having Exp 0 on at LV1 means you do around the same damage you would at LV70, so I didn't even bother trying for a lower level. I may do a no loop fight on the Unknown at LV100 just because at LV1 you have to loop him (still because of the forced counter).