We do allow multiples of the same character, if they're from different 'canons.' As Click said, we consider Before Crisis to be part of the FF7 canon and we already have an FF7 based Elena.
An example of difference would be, in KH Cloud vs. FF7 Cloud. The games have nothing to do with each other, but have the same characters; however, the experience these characters go through in either game is different, and would make each one applicable in his/her own right. FF7 Cloud doesn't fight in the Olympian stadium, after all, nor did he make a pact with Hades, nor would he have canon knowledge of Sora or Traverse Town; on the other hand, KH Cloud has no knowledge of JENOVA, his version of Aerith is still alive, and he would know nothing about Midgar, either.
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Hi there, another mod!
An example of difference would be, in KH Cloud vs. FF7 Cloud. The games have nothing to do with each other, but have the same characters; however, the experience these characters go through in either game is different, and would make each one applicable in his/her own right. FF7 Cloud doesn't fight in the Olympian stadium, after all, nor did he make a pact with Hades, nor would he have canon knowledge of Sora or Traverse Town; on the other hand, KH Cloud has no knowledge of JENOVA, his version of Aerith is still alive, and he would know nothing about Midgar, either.
I hope that makes sense! \@_@/