defeat brock blaine misty ericka poison leader and all the other gym leaders
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The 7th badge is in mahogany town.
Directly to the right of the city with the fourth badge.
After you beat the gym, you must leave, heal ur pokemon, then go back and talk to the leader and she should give you the badge
The last badge is off the coast of cinnabar it is the red dot in the left corner of the map
You can't get the badge to the fighting gym. You can however, fight the dojo master. He is in Mt. Mortar. When you beat him, he will give you a Tyrogue.