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Square isn't exacty creative when it comes to names. Shin-ra's secre soldiers are SOLDIERs, the world's secret weapons are WEAPONs, the evil organizationin Kingdom hearts is called The Organzation, and Cloud's ultimate weapon (which you get by deafeating Ultimate Weapon) is called the Ultima Weapon. sweatdrop

Anyway though, Nibelheim seems innocent enough, fairly creative. Hey, it's in German. Then I found out-- the name of Cloud's hometown, Nibelheim, translates to "cloud home."
rofl