Omnislash in Disc 1 is easiest to earn right after the Temple of the Ancients. I would recommend using Cloud for the Battle Arena since he is overall the best character between stats, weapons, and limits. Make sure to equip the Nail Bat and Ribbon on him. Note that the Nail Bat does not possess any Materia slots.
Next equip Cloud with an Armor with the most Materia slots possible without losing Defense or Magic Defense. Cloud will now possess average-high Attacks, well rounded Defense/Magic Defense, and immunity to basically all status ailments (thanks to the Ribbon). Having his Level 3 Limits is highly advised as well since they are powerful. Next onto Materia configuring.
Recommended Materia
Nail Bat: No Materia slots
Armor: Restore, HP Plus, Enemy Skill (Beta, Big Guard, White Wind, Magic Hammer), Odin
Now travel to the Gold Saucer Wonder Square to stock up on Gold Saucer Points (GP). Play the Bike Mini Game 10-20 times earning 100-200 GP. Since each try at the Battle Arena is 10 GP. So in turn each game successfully completed of the Mini Bike is equivalent to one try at the Battle Arena. Food for thought.
That takes care of all the prep work. Now find the Battle Arena and start battling. Here are the most notable enemies that might cause you a pain in the back.
Appearance: Grim Reaper
Move: Joker (Instant Death)
Appearance: Jelly Blob
Move: Drain (MP)
Note: MP is crucial in the Battle Arena. It might even be more valuable than HP.
Appearance: Pirate Ship
Move: Exits you from the Battle. Annoying because you get 0 Battle Points (BP) for being thrown from the Battle in the Final Round. Defeat this enemy quickly.
Slot Battle Arena Point System In a Nut Shell
Final Round Handicaps determine how many points you will receive after defeating the last enemy. Basically the more difficult Handicaps give more BP. The No Handicap or Restore Bonuses give low BP. Try to get these Handicaps because they pay off the best.
Broken Weapons/Armor/Accessories/Materia (High BP)
Toad/Mini (Medium BP)
After earning Omnislash for between 60,000-70,000 Battle Arena Points the rest of the game will be simple. To put it simply by defeating Jenova at the end of Disc 1 with 16-hits from a devastating Nail Bat. To those of you attempting to unlock Omnislash Good Luck!
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