Cloud and Yuffie meet when Cloud & co. litterally run into Yuffie in the forest. She initially attacks the group and steals/tries to steal all their materia. By the player making the right (non-dumb) moves, Yuffie joins the party.

Depending on how often you keep Yuffie in your party, she gets quite a bit of amusing dialogue. Despite her quirks, she and Cloud seem to get along fairly well. At one point, when Yuffie rips the party off and heads back to Wutai, Cloud and co. track her down. While upset with her, they end up forgiving her and letting her re-join them. I think it's rather interesting that Cloud would allow her back into the party after something like that.

On the airship, you can get quite a few cute scenes between Cloud and Yuffie by seeking out Yuffie each time you go back onto the ship. She'll usually say something funny to him or complain about being airsick. Adorably, Cloud tries to teach her some bizarre exercises that will help her airsickness. This is perhaps the cutest moment between them (and the inspiration for the site title!). Personally, I think Cloud just wanted to watch her do those funky squats. XDDD

But perhaps the most interesting aspect of their relationship in FF7 is that, if you get Yuffie for the date sequence, she will actually kiss Cloud (you can see the screencaps by visiting the Links section), thus making her the only female character to EVER (yes, EVER, which means including Advent Children) kiss Cloud. And from the screenshots, it looks like a mouth kiss. It's a pity that so many fans missed the first Final Fantasy kiss of the 3d era.

Over all, the two of them got along and appeared to enjoy each other's company. Cloud grows more and more tolerant of Yuffie's comically large ego, and she grows more and more comfortable with him. Plus, it takes guts to just randomly kiss some hot guy who appears to be crushing on another girl. You go, girl!