All Final Fantasy games take place in entirely different realities. Those within the same series number iteration follow the same world (like FFVII all take place on Gaia). It remains to be told how FFXIII will pan out.
The additional supernova animation was added to the US version of FF7 as was never part of the original FF7 (japan release). I guess the battle directors wanted to play around abit and did that. The animation of Supernova in FF7 is therefore not canon.
There is also the underlying possibility that FFVII and FFXs worlds may exist in the same reality but on different worlds, although Nomura has clearly stated that it is an idea he wants gamers to have, but not accept it as a fact.
Also possible to be linked is the world of Ivalice in tactics and FFXII... although I've not played Tactics so I don't know much
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