Hi. I heard that you can steal the royal armor and sword off Fou Lu's dragons..

Yes it is true.
1. You can steal the Dragon Tear with Ryu only when you fight Fou-lu the first time in the one on one battle. You may use pilfer or steal because he can not die due to the fact that the battle ends in five rounds regaurdless of your strength. However, you may have to reset if you fail to steal it (to reset it with out turning off your system, hold start + select for a couple of seconds) and it is useless to steal it if you choose to join him after the battle and fight your ex-parters for the alternitive ending since you won't be able to save your progress.
2. You can steal the Royal Armor from the second fight with Fou-lu which is when he summons Tyrant. It takes a while, sometimes up to 50 tries but with patience and good stats you can do it but you'll manage because the music is one of the best you`ll ever here in any game.
3. You can steal the Royal Sword from the third and final fight with Fou-lu which is when he transforms into astral. Similar to the armor, it takes patience and good stats.
Now people say some characters have higher chances of stealing such as Ursula and Ershin and people with high agility. I used Ursula to do the job. If the agility process is true then try equipping them with anything that boosts their agility, Ershin will do good if he is eqipped with the Lightning armor which can be forged by the smith in Mt. Glom with 3 bent screws. Casting speed may also enhance the chances of stealing the item.
Note* If you need any other info, ask me at [email protected] because i literaly have almost all items and as far as i know i have all weapons, armors, accessories, king sized fish, skills, dragons, transformations, completed masters, i defeated every monster in the game including Rider and performed all possible special moves and i know the fastest way to level up and last but not least i know several secrets that you may not find in most faqs.