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In order to get some good stuff in Final Fantasy VII, you need to breed Chocobos. A chocobo is a yellow bird which you can use as riding horse. Normally you only need it to get out of the Gold Saucer and over the swamps near the chocobo farm. But you can also catch them, feed them, ride them and breed them. When you do everything correctly according to Chocobo Sage (the purple fellow in the Icicle Area) you'll get a Golden Chocobo. A chocobo which can cross everything (Mountains, rivers and even the ocean) You'll need a Golden Chocobo in order to get the Knights of the Round materia. You can either follow the rules told to you by the Chocobo Sage or you can follow these handy, almost guaranteed guidelines to get a Golden Chocobo. Be warned though, it can take a long time until you have one. (Between 4 and 8 hours!!)
Getting Started
Before you can start breeding you need 4 items and 6 stables at the chocobo farm. First you'll need three Carob nuts. These nuts can be found in the Icicle Area. Fly with the Highwind over the area until you see a green spot (Not the ones with the house or near Bone village). Land there and run around over the green grass until a red dragon/kangaroo like beast attacks you. He has lots of hitpoints (around 32.000) but cannot do much damage. You can either steal the nut from him (using the "steal" command) or defeat him and you'll get it too. Repeat this process until you have 3 Carob nuts. Then fly to the east of the map. See the islands on the right near Kalm village? Land on the largest island and walk around in the forest on that island (The name of the island must be "Goblin island"). Then a goblin (or goblins) should attack you. You can learn the "Enemy Skill" Goblin Punch from him and you can also steal the Zeio nut from him. Fight the goblins until you have a Zeio nut. One is sufficient. When you have 4 nuts (3 Carob and 1 Zeio) and 6 stables, safe your game.
Getting the Green and Blue chocobo
Go to the chocobo footprints near the Gold Saucer. Equip "chocobo lure" and run over these prints. When you hear a strange battle song, it means that in the battle stands a chocobo. Whatever you do, do not hit the chocobo! Defeat the other enemies and you will catch a chocobo. Choose for the option "Send it back to the stables". Repeat this process 4 times. Go back to the farm. You'll see that your chocobos run around in the meadow. Go inside the stables and talk to Choco Billy. Choose the option "Moving Chocobo". The screen will turn black and you can see your chocobos condition. Choco Billy will give comment over each chocobo. You need two "Good Chocobos". One male and one female. If you do not have good ones, simply release the unusable and try to capture some more chocobos. You'll also need 2 Great chocobos. One male and one female. To get these, go to Mideel and run over the footprints there. Repeat the same process as with the Good Chocobos. When you have all 4 of them, save your game. Go to the stables and talk to Choco Billy. Choose the option "Mating Chocobos". Now select a good female and a great male. Give them a Carob nut. When you're lucky you now have a blue or green chocobo. If you don't, reset the PSX (or restart the PC game) and try again. If you have saved your game. Go to the stables again and select "Mating Chocobos". Now select the good male and the great female. Give them a Carob nut too. When you're lucky you now have a blue or green chocobo. If you had a blue with the others and you now have a blue one again, simply reset and try again. You must reset until you have a green chocobo and a blue chocobo of the opposite gender. Save your game if you have both. (It is advisable to save when you have either Blue or Green)
Getting the Black chocobo
Go to the Chocobo Sage. Buy a minimum of 30 Sylkis Greens from him. Go back to the stables and feed a minimum of 15 Sylkis greens to the blue and green chocobo. Go to the Gold Saucer. Go directly to the Chocobo Race and talk to Ester. She will ask if you want to enter the race. Say yes and select the green or the blue chocobo. Now you can race with the chocobos. Race both chocobos until they reach S-class. (You can race them to A-class, but S-class is better) It is possible that Cid or Tifa ask if they could ride once in a while. This does not influence the results. When they are both on S-Class, save your game. Go back to the Chocobo farm. Talk to Choco Billy and select "Mating Chocobos". Choose the Blue S-class and the Green S-class and give them a Carob nut. When your lucky, you'll now have a Black Chocobo. If you don't, reset and try again. If you have a Black Chocobo, save your game.
Getting the Golden chocobo
Take the Highwind and fly to the Icicle Area. Run over the chocobo prints in the snow. A little hint: You have a better chance of getting a Wonderful Chocobo if there are 2 rabbit like animals when you capture it. Repeat the same process until you have 4 chocobos. Fly back and ask Choco Billy if you have caught a Wonderful Chocobo. (Note that this must be of the opposite sex of the Black Chocobo) If you do not have one. Let them go and fly back to try again. When you have one, save your game. Buy at least 30 Sylkis greens from the Chocobo sage and feed them to the Black and the Wonderful Chocobo. Go to the Gold Saucer and race them both until they have reached S-Class. When they do, save your game. Go back to the stables and talk to Choco Billy. Mate the Black and Wonderful Chocobo and give them a Zeio nut. When you're lucky you now have a Golden Chocobo! If not, reset and try again.
Racing chocobos
Racing a chocobo is very easy. First of all, you must enroll a chocobo and then you can start racing. You start in the C-class. This is the beginners class. When your chocobo wins 3 times, it will move up a class. After C-class, you'll join the B-class. Then the A and finally the S-class. You can choose between a long or short race as well.
When you start a race, you can choose between automatic and manual. The auto setting is not very handy though, because its doesn't fully use the dash meter. Its much easier to put it on Manual and race it yourself. Steering is no problem, it almost steers by itself. To make it even easier, hold down the L and R buttons to recover your dash meter. (9 and 3 on PC version)
Chocobo Tips

White Chocobo

There is a white chocob in Mideel. If you give it some greens and scratch it behind its ears it will gove you the Contain materia. As for breeding a White chocobo. Its not possible!!

Chocobo Rating

MIf you want to know how good your chocob really is, talk to Chocobilly and select "Move". He will show you the chocobos you captured and comment on it. Pay attention to what he says. Because he rates them. You only need the ones where he comments with: "This seems like a good chocobo" and " This is a great chocobo" and "This is a wonderful chocobo".

Are you nuts?

You'll need nuts to breed new chocobos. There are about 8 different types of nuts in the game, but only 2 are important. The Carob nut and the Zeio nut.

Tracking chocobos
There are a lot of chocobo footprints on the world. You only need to visit the ones near the Goldsaucer, on Mideel and the Icicle area. So forget the others. 

Greens
There are many different greens fot your chocobo. But there is only one green that truly stands out. The sylkis greens. These cost 5000 Gil a piece but are extremely useful. You can buy them from the Chocobo Sage

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