is final fantasy 7 ever going to come out for ps3 as either an updated version with improved graphics and/or story line or even the original version?

me and my friend where debating over it, and also is it true that FF7 was actually banned from being sold in stores in the USA? ... seems strange if it is (:OP

As far as I know, the only "upgrade" that they did for Final Fantasy 7 was a tech demo (only to show the technology of something) that showed the opening in Advent Children styled animation. At that time there were no plans to actually remake the game. That is as much as I know.