Err I hated that fight. I think its right before or right after the Demon Wall which I hated as well.
I was lucky to have Aerith's Limit Break where your party turns invincible in that match. I think it was her 2nd Level 2 Limit Break or it was her first Level 3 Limit Break.
I can't use Aerith, I'm a big fan of healing magic and all, but her defense is difficult to work with. In fact, she's the reason I keep losing to Red Dragon, she dies in two or three hits, then I spend the rest of the battle trying to revive everyone.