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Below are some of the rumours that I have found for Sephiroth.If you have got any others,email me and I will put them up.If you manage to prove any of them,tell me and I will give you the credit you deserve....

You must find twelve 1/35 soldiers scattered around Junon. Once finding these, Sephy will pop up impressed by your skills, and will offer to join your party.
Result : FALSE

You must find the Eight Statues of Sephiroth, carefully hidden throughout the FF7 world. Finding these is supposedly extremely hard. You can obtain a statue by playing Aeris' tune on the broken piano inside the Shinra Mansion, Nibelheim.
Result : Unproven

According to this rumour, there are actually TWO versions of Sephiroth - one that was 'killed' by Cloud five years ago, and the recent Sephiroth that summoned Meteor. The earlier Sephiroth (whom we shall call Sephy 1) will offer to temporally join your party to dispose of the latter Sephiroth (whom we shall call Sephy 2).
This is achieved by having Cloud and Tifa in your party and visiting Nibelheim. There's a 1 in 50 chance an ex-Shinra employee will be in the town. Speak to him, and he will sell a key to Jenova's room in the Nibelheim reactor. Buy the key, enter the Nibelheim reactor and open the door to Jenova's room. Once inside, explore for half a minute and Cloud will experience a fit. In steps Sephy 1, who will explain his story and then join your side as a playable character. He will leave your party once Cloud reaches Level 99.
Result : Unproven

It is suggested confronting the Midgar Zolom while your characters are under level 15. Defeat the monster while sustaining no wounds, and proceed to the cave to kill an additional fifty monsters without gaining a scratch. Travel towards the left path and engage the Turks, and defeat them. Sephiroth will then appear, impressed by your skills, and will join you.
Result : Unproven

A Sephiroth clone is available in the Japanese version of FFVII.Collect 1/35 soldiers and the replica of Sephiroth's sword from the Gold Saucer, and they should combine into a Seph clone. He begins at level 50, but stays there permanently.
Result : Unproven

Sephiroth clone: Get 12, (just 12) 1/35 soldiers, a masamune blade replica, a super sweeper and 2 mythril. Take them to the weapons maker that you usually give mythril to. Talk to him, and he asks you for mythril. Anew option will appear saying "Yes, but we need it." He'll ask what you need it for, and you say to defeat Sephiroth. He then notices the Masamune replica and says he can make it work, so he takes a mythril and the sword and makes you a genuine copy of the Masamune. Then go to the weapons seller in Midgar and show jim the Super Sweeper. He says he could make some armor but needs some mythril. Give him the second mythril and he makes a special armor. Cloud indicates that he can't handle the sword or armor, that they're for someone more powerful. Go to the Lifestream city on the bottom of the map and walk up to the lifestream. Cloud drops the soldiers into the stream, and they combine to make a copy of Sephiroth. He rises out of the water and asks for his sword and armor. Give them to him and he joins your party.
Result : Unproven