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Any game that does 480p works just fine in widescreen.
480p just condenses a 4:3 image so that when stretched out by your TV, it'll be 16:9.
I haven't tried FF, but God of War and Tekken (another game that'll use progressive scan) both look and work just like the PS2 versions.
480p isn't always widescreen - it's just "progressive scan". There were many Gamecube games that were 480p but not 16:9.
The PS2 always, always outputs at 4:3, no matter whether it's 480i or 480p (GT4's 1080i mode may be an exception). If you set your game to 16:9, it'll condense a 16:9 image into a 4:3 frame. When you set your TV to force 16:9 display, it'll look as expected.