He is made out of matter, and as long as you believe hard enough, your attacks will be able to damage him. The in-game mechanic to support this is hammering on the select button as you attack Sephiroth. If you do not do any damage, you are not pressing fast enough.
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Buy ActionReplay or GameShark and find some codes.
In each campaign mission you have 20 hearts, you will get three stars even if you finish the mission with 18 hearts. In the heroic and iron challenges you only have 1 heart and if you complete the mission you get 1 star each. Hope this answers your question.(Psst! in the top of the menu screen you have the follow on facebook and twitter, awarding one star each)
You need to enchant a Diamond Sword with either Sharpness, Smite or Bane of Arthropods, preferably with a high level. Smite and Bane of Arthropods deal more damage than Sharpness, but work only on specific opponents - zombies, zombie pigmen and skeletons for the former, spiders, cave spiders and silverfish for the latter. Even if you get a lower level enchantment, keep attacking things and hope for a critical hit, which adds around 50% extra damage. A diamond sword deals 3 1/2 hearts of damage per strike. Sharpness adds up to 1.5 hearts per level, Smite and Bane add up to 2 per level (it's actually random), but with a high enough level enchantment, it's easy to get the damage achievement.
I think they have it at walmart or something IDK! UUUUUUHHHHHHHHHHH! ---- Game Stop is a really good place to look. Every one I've ever been in has had both I and II, as well as the Gameboy Chain of Memories. If they don't have it, ask an employee if they plan to get it in anytime soon.
1 heart nothing 2 heart a gift to you 3 heart nothing 4 hearts lunch date 5 hearts get 20 log game and beat luke 6 hearts confesson at allens tree I hope that helps =)