Don't 'double post' (post two times in succession), just use the Edit Button to add info to a previous post. You have to wait sometimes for people to reply.
Anyway, it's times like these that I redirect people to
this page. And
this page is pretty cool too.
The classic strategy?
Equip Cloud with [any sword that can gain AP, as you may want the ton of AP that you'll get for your Materia] and a Mystile. Maybe Sprint Shoes or something else as an accessory.
Give him Knights of the Round, linked with HP Absorb. Give him Mime (linked with Counter to make it even better), W-Summon, and maybe some HP ups to up your HP to the max if you wish.
When the battle begins, pray that Cloud isn't swallowed by Quicksand. I've heard that if you kill your other two party members and revive them once he buries his hands, they won't be swallowed, but I haven't tried it.
After that, wait until Ruby buries his hands in the sand. Then W-Summon Knights of the Round, first on his hands, then on Ruby. Assuming you only have a level 1 Knights of the Round, it'll only kill off the tentacles (and not hit Ruby, "Summon Power used up"). Then, Mime. This doesn't use up resources, so you won't use up HP and it won't take Summon Levels into account, so you'll hit Ruby twice with KOTR. He does counter with Ultima, but you have HP Absorb and a Mystile on, so you'll be okay. Keep Miming, don't do anything else. He'll eventually re-bury his hands again, but since the first KOTR aimed at the tentacles, it'll kill them off, and blast Ruby again. Keep this up, and you shouldn't die. And if he hits you, then you get a free Mime thanks to Counter! That's two more free KOTRs! This is a fullproof, if not irritatingly long, strategy.
Or use Kitten Sith's Joker Doom. <3