She heard Cloud before she saw the fuzzy pointy hair in view. She could feel the flames from his spell and trusted him not to hit her. They might have argued when the first met but she couldn't deny that she kind of liked him; at least he wasn't a SOLDIER.

Yuffie rummaged around in her pocket with her free hand. Her other hand was still rubbing at her eyes as she tried to see.

"Is this it?" It was a small thing and at the time she picked it up it looked like a seed. She really hadn't had the time to figure it out and before she could ask they were attacked. Even if it wasn't the seed she thought it looked cool so she took it.