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I've liked a lot of different battle system, but my favourite so far is FFVIII's, I still thing that the Junction/Draw/GF system is one of the best ideas ever, the only drawback being that the GFs animations couldn't be skipped, other than thast the system offered a lot of customizability and some very good boss battles.

Honorable mentions:
Xenosaga (the three of them)
Suikoden II (and therefore Suiko V, since they're the same)
Suikoden III
Final Fantasy VII
Persona 3
SMT: Nocturne